REG - Circle Property PLC - Repayment of Debt Facility

Circle PropertyAnnouncement

22/06/2022 16:45

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RNS Number : 8583P  Circle Property PLC  22 June 2022

22 June 2022

Circle Property Plc

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

 

Repayment of Debt Facility

 

Circle Property Plc (AIM: CRC), which invests in, develops and actively
manages well-located regional office assets, is pleased to announce the
following update in relation to its reduction in gearing and debt facility.

 

The Company has a financing facility in place with RBS and HSBC for £100
million. The senior revolving facility is for £60 million with an "accordion"
option for a further £40 million (of which the Company had drawn £62.3
million) (the "Facility").

 

Following the disposal of Kents Hill Park Conference Centre which completed in
March 2022, the Board resolved to utilise 50 per cent. of the proceeds to
reduce debt, leaving an outstanding amount under the Company's facility of
approximately £21.4 million equating to an LTV of 29.4 per cent.  Moreover,
on 26 May 2022, the Company disposed of 720 Aztec West in Bristol for a
consideration of £2.52 million, the net proceeds of which were utilised to
further reduce the Facility to £19.16 million.

 

The Company now announces that as at 22 June 2022, it has repaid the amount
outstanding under the Facility of £19.16 million in full and has subsequently
cancelled the Facility, leaving the Group with a cash balance of approximately
£5.06 million as at 22 June 2022 and no debt.

 

The Company continues to make targeted asset sales in an orderly manner over a
period of two to three years (if not sooner) in line with its recently updated
strategy. Notwithstanding this disposals' programme, the team continues to
actively manage the portfolio to achieve lettings at estimated rental values
and will complete scheduled developments including at K3 Kents Hill, Milton
Keynes (scheduled for completion in Autumn 2022) as well as other
refurbishments and fit-outs as appropriate.

 

The Board remains committed to maximising returns and delivering value to
Shareholders, and as such, the Board will evaluate and determine returns of
capital to Shareholders using a combination of existing cash resources and the
proceeds of any future asset sales. 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 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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