REG - Circle Property PLC - Disposal - Somerset House, Birmingham

Circle PropertyAnnouncement

23/11/2022 12:45

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RNS Number : 3884H  Circle Property PLC  23 November 2022

23 November 2022

Circle Property Plc

("Circle", the "Company" or the "Group")

 

Disposal - Somerset House, Birmingham

 

Circle Property Plc (AIM: CRC), announces, in line with its disposal strategy,
that it has exchanged contracts on the sale of Somerset House, Temple Street,
Birmingham ("Somerset House"), a refurbished city centre, mixed use property,
to Somerset Land and Property Ltd, at a sale price of £15.18 million.
Completion is expected by the end of February 2023.

 

Somerset House comprises approximately 38,805 sq ft of office space let to BE
Group Limited and 10,956 sq ft of leisure accommodation let to Las Iguanas
Limited and Camerons Brewery Limited, with two leases of approximately 13
years to expiry and total rent passing of approximately £1.2 million per
annum. Somerset House was acquired by the Group in January 2016 for
approximately £7.75 million and the profit before tax for the year ended 31
March 2022 attributable to Somerset House was £0.507 million. The sale price
of £15.18 million represents a 96% uplift on initial purchase price, but a
decrease of 16.1% on the 31 March 2022 valuation of £18.1 million. The sale
price is reflective of the reduction in valuations being seen across the wider
UK commercial property market at present and yield shift.

 

As previously announced, the Company repaid the amount outstanding under its
debt facility in full and is debt free. The net proceeds from disposals,
following completion, will be held as Group cash and the Board expects that a
minimum of two returns of capital will be made to shareholders, the first of
which is expected to occur by March 2023. The Company's current cash balance
(following completion of the previously announced disposals of (i) buildings
K1 and K2 at Kents Hill Business Park, Kents Hill, Milton Keynes, (ii)
Cheltenham House, Temple Street, Birmingham and (iii) Elizabeth House, London
Road, Staines) is £23.8 million.

 

The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the UK version of the EU
Market Abuse Regulation (2014/596) which is part of UK law by virtue of the
European Union (Withdrawal) Act 2018, as amended and supplemented from time to
time.

 

 

 Circle Property Plc                               +44 (0)20 7930 8503
 John Arnold, CEO

 Edward Olins, COO

 Cenkos Securities plc                            +44 (0)20 7397 8900
 Katy Birkin

 Mark Connelly

 Radnor Capital                                   +44 (0)20 3897 1830

 Joshua Cryer

 Iain Daly

 Camarco                                          +44 (0)20 3757 4992
 Ginny Pulbrook

 Toby Strong

 

 

 

 

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