REG - Circle Property PLC - Disposals

Circle PropertyAnnouncement

22/08/2022 07:00

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RNS Number : 6939W  Circle Property PLC  22 August 2022

22 August 2022

Circle Property Plc

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

 

Disposals

 

Circle Property Plc (AIM: CRC), is pleased to announce, in line with its
disposal strategy, that it has exchanged contracts on the sale of Kents Hill
Business Park, Kents Hill, Milton Keynes ("Kents Hill") (buildings K1,K2 and
K3) comprising approximately 80,576 sq ft of office accommodation to Corum XL
c/o Corum Asset Management, at a combined sale price of £17.23 million, an
increase of 10.1% on the 31 March 2022 valuation of £15.65 million.

 

The sale of buildings K1 and K2 completed simultaneously on exchange at a sale
price of £12.73 million. Completion of the sale of building K3, at a sale
price of £4.5 million, is expected to take place prior to the end of the
calendar year, following the completion of the refurbishment currently
underway.

 

Kents Hill (K1, K2 and K3) was acquired by the Company in December 2013 for
approximately £11 million and the profit before tax for the year ended 31
March 2022 attributable to Kents Hill was £0.56 million.

 

In addition, the Company has also exchanged contracts on the sales of
Cheltenham House, Temple Street, Birmingham, comprising approximately 16,469
sq ft of office and restaurant accommodation to A S Leisure Properties
Limited, for £4.7 million, and Elizabeth House, London Road, Staines
comprising approximately 14,829 sq ft of office accommodation to MAP
Commercial Properties Limited for £3.5 million. The sale prices represent a
decrease of 9.6% and an increase of 16.7%  on the 31 March 2022 valuations of
£5.2 million and £3 million, respectively. Completion is expected on 7
September 2022 and 28 September 2022, respectively.

 

As previously announced, in June 2022, the Company repaid the amount
outstanding under its debt facility in full and is now debt free. The net
proceeds from the disposals 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. Following completion of the
sale of Kents Hill K1 and K2, the Company's net cash balance is approximately
£16.5 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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