Disposal of subsidiary

RNS Number : 1786K

KCR Residential REIT PLC

12 December 2018

 

12 December 2018

KCR Residential REIT plc

Disposal of subsidiary

KCR Residential REIT plc ("KCR" or the "Company) announces that it has today sold its wholly owned subsidiary, KCR (Cygnet) Limited ("Cygnet") to a subsidiary of Inland Homes plc ("Inland") for a cash consideration of £1.14 million, subject to adjustment upon finalisation of the completion accounts.  Cygnet owns two long leases on supermarket sites in southeast England and the sale includes the associated debt facility.

KCR acquired Cygnet on 29 June 2018 from Inland.  Sale proceeds excluding costs are approximately the same as the acquisition cost of Cygnet.  Cygnet was valued at £1.5 million net of debt in KCR's financial statements at 30 June 2018.  The proceeds of sale will be used to reduce the Company's indebtedness.  The disposal is consistent with the Company's investment strategy to invest primarily in residential housing.

The sale is classified as a related party transaction under the AIM Rules as Inland is interested in 12.6 per cent of the Company's share capital.  The Directors consider, having consulted with Arden Partners, the Company's nominated adviser, that the terms of the transaction are fair and reasonable insofar as the shareholders are concerned.

For further information, please contact:

KCR Residential REIT plc Dominic White, Chief Executive	[e-mail] [phone]
Arden Partners plc Tom Price/ Benjamin Cryer	[phone]

Notes to editors:

KCR's objective is to build a substantial residential property portfolio that generates secure income flow for shareholders through the acquisition of SPVs (Special Purpose Vehicles) with inherent historical capital gains. The Directors intend that the group will acquire, develop and manage residential property assets in residential areas in the UK. 

 

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