Amended Curno cinema lease

RNS Number : 2428W

Worsley Investors Limited

17 August 2020

 

17 August 2020 

Worsley Investors Limited

("Worsley Investors" or, together with its subsidiaries, the "Group")

Amended Curno cinema lease

Further to the update released on 21 July 2020, the Board is pleased to announce that on Friday, 14 August 2020, the Group exchanged in relation to an amendment to the terms of the Curno cinema lease to UCI Italia S.p.A ("UCI").

Pursuant to the amendment, the rental for the period from 1 March to 30 November 2020 is waived. From 1 December 2020 until 28 February 2021 the current base annual rental of €830,000 will be payable.

On 1 March 2021, the annual base rental under the lease will increase to €915,000.

The minimum term of the lease is extended until 30 June 2035 rather than the present 31 December 2033.

Rental due based on annual ticket sales remains unchanged.

The rental holiday delivers a substantial cash flow benefit to UCI during a period when the cinema has not operated normally. In return, the rental increase and lengthening of the lease term provides Worsley Investors with a corresponding benefit to capital value.

The amendment is subject to Italian notarisation, which is scheduled for early September.

Net Asset Value

A valuation of the Curno property incorporating the impact of the lease amendment has been adopted in Worsley Investor's NAV as at 30 June 2020 of 38.1p per share announced separately today.

Portfolio update

Worsley Investors has taken advantage of the general weakness in smaller company prices as a result of the Covid-19 pandemic to make judicious purchases and, as at 31 July 2020, had 14 stocks in its portfolio, which had a market value of some £2.37m.

Enquiries:

For further information, please contact:

Worsley Associates LLP (Investment Advisor)

Blake Nixon

Tel:  [phone]

Shore Capital (Financial Adviser and Broker)

Robert Finlay / Anita Ghanekar / Hugo Masefield

Tel:  [phone]

Praxis Fund Services Limited (Administrator and Secretary)

Matt Falla / Katrina Rowe

Tel:  [phone]

LEI: 213800AF85VEZMDMF931

 

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