REG - Alpha Real Tst Ltd - Acquisition of Crematoria

Alpha Real TrustAnnouncement

20/01/2025 16:30

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RNS Number : 0092U  Alpha Real Trust Limited  20 January 2025

 

 

20 January 2025

LEI: 213800BMY95CP6CYXK69

 

ALPHA REAL TRUST LIMITED ("ALPHA REAL TRUST" OR THE "COMPANY")

ACQUISITION OF FIVE CREMATORIA IN ENGLAND WITH A CONDITIONAL EXCHANGE ON A
SIXTH ASSET

 

Alpha Real Trust announces it has acquired a portfolio of five crematoria in
England for £34.2m. The portfolio is leased to subsidiaries of Dignity Group
Holdings Limited ("Dignity") who are one of the leading providers of funeral
related services in the UK with a market leading position. Dignity will
continue to operate the crematoria under the long term leases. The five
identical leases are for a 40 year term with a tenant option for an additional
20 years. The aggregate commencing rent is £2.5m p.a. and will be linked to
inflation. Alpha Real Trust has acquired the assets using existing cash
reserves as well as a loan equivalent to c.65% of the acquisition price. Alpha
Real Trust has also conditionally exchanged on a sixth crematorium for
consideration of £8.8m let on the same terms with a longstop date for the
purchase of the 31 March 2025.

Dignity are using the funds raised by the sale and lease back to pay down
existing unsecured debt.

This acquisition offers the Company the potential to benefit from a long term,
predictable, inflation-linked income stream whilst contributing additional
diversification to Alpha Real Trust's portfolio. In addition, the investment
offers the potential for associated capital growth. The Company remains
focused on asset-backed lending, debt investments and high return property
investments in Western Europe that are capable of delivering strong risk
adjusted cash flows.

Alpha Real Trust is delighted to be partnering with Dignity as an accomplished
and experienced crematoria operator in the UK market and look forward to
growing the business together.

Dignity were represented by KLM Real Estate, Hogan Lovells and DLA Piper,
Alpha Real Trust by Augur Group and Penningtons Manches Cooper.

 

For further information please contact:

Alpha Real Trust Limited

William Simpson, Chairman, Alpha Real Trust
                     +44 (0) 1481 231 100

Brad Bauman, Joint Fund Manager, Alpha Real Trust         +44 (0) 20 7391
4700

Panmure Liberum, Broker to the Company

Atholl Tweedie
 
+44 (0) 20 7886 2500

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