REG - Highcroft Invs PLC - Property Acquisition

Highcroft InvestmentsAnnouncement

01/05/2019 16:05

RNS Number : 7988X
Highcroft Investments PLC
01 May 2019
 


Highcroft Investments PLC
1st May 2019
 
Property Acquisition
The Board is pleased to announce that Highcroft Investments PLC has today completed on the purchase of the freehold interest of a gym and retail warehouse investment in Ipswich for £4,650,000, representing a net yield of 7.04%.  This acquisition was funded from existing debt facilities.
The property, acquired from Huron Properties Limited, comprises two detached buildings totalling 43,738 sq ft, occupying a site of approximately 3.1 acres, consisting of a gym with swimming pool let to Dave Whelan Sports Ltd until September 2035 and a motorcycle showroom let to Orwell Motorcycles Ltd until September 2026. The total income is £347,557 per annum which rises, by way of a fixed increase, to £386,769 per annum in September 2020. There are further fixed increases in 2021, 2025 and 2030.
Commenting on the acquisition, chief executive Simon Gill said: 'This investment provides a good long-term income stream with fixed increases throughout the term. It provides an attractive yield for our shareholders of over 7%, which is due to increase to a minimum of 7.83% in September next year. The gym services a large residential development which adjoins the subject site, as well as other areas of the town. We continue to look for other commercial investments with long-term income streams and prospects for future enhancement.'
 
For further information contact:
Highcroft Investments PLC:
Simon Gill / Roberta Miles
01865 840023
 
Panmure Gordon (UK) Limited:
Fabien Holler
020 7886 2500
 




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