Disposal

RNS Number : 8871Z

Gresham House PLC

23 September 2015

 

23 September 2015

Gresham House plc ("Gresham House" or "the Company")

(AIM: GHE)

SALE OF NEWTON LE WILLOWS SITE & COOP BANK FACILITY

Gresham House plc, the specialist asset manager, today announces that it has completed the sale of 25.8 acres of its site at Newton-le-Willows to Persimmon Homes Ltd.

The transaction will realise a total of £7.25 million net. A deposit and initial payment of £944,610 has been received and the balance will be receivable in three tranches over the next 42 months. The asset was being carried in the balance sheet at 31 December 2014 at a discounted value of £6.81 million.

In addition, Gresham House will be entitled to an overage payment in the event that Persimmon Homes Ltd achieves a selling price in excess of an agreed amount per square foot.

Gresham House retains a five acre site with retail planning permission contiguous to the site sold and will explore options for this site now the sale of the main residential site has been  completed.

Following negotiations, it has been agreed that the facility with the Co-op Bank be reset at £2.85 million after £428,000 of the initial proceeds from the sale have been applied in reducing the amount outstanding. The new arrangements have a two year term. This replaces a previous agreement with the Co-op Bank wherein the existing facility with the bank of £3.278 million as at 31 December 2014 was to be extended by £372,000 to fund capital expenditure at Southern Gateway, Speke and was then subsequently to be reduced by £800,000 of the initial proceeds from the Newton-Le-Willows site.

Commenting on the sale, Tony Dalwood, Chief Executive of Gresham House said: "The completion of this sale continues the realisation of the Company's remaining legacy assets. We remain focused on developing Gresham House as a specialist asset manager of illiquid assets both organically and through acquisitions."

-End-

Enquiries:

Montfort Communications

Gay Collins / Rory King:

07798 626282 / 0203 770 7906

Gresham House plc

Anthony (Tony) Dalwood:

020 3837 6270

Liberum Capital Ltd

Neil Elliot/ Jill Li:

020 3100 2000 

 

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