REG - Highcroft Invs PLC - Property Acquisition

Highcroft InvestmentsAnnouncement

17/04/2023 07:00

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RNS Number : 3446W  Highcroft Investments PLC  17 April 2023

17 April 2023

Highcroft Investments PLC

Warehouse Property Acquisition

The Board is pleased to announce that, on 14 April 2023, Highcroft Investments
PLC, via its property owning subsidiary Rodenhurst Estates Ltd, completed on
the acquisition of the freehold interest of a property being units 12, 13
& 14 Aberaman Industrial Estate, Aberdare, South Wales.

The property, acquired from Colin James Johnston and Alison Mary Louise
Johnston trading as Clear Partnership, comprises 3 units that have been
combined to create one large unit totalling 81,000sq ft. The unit occupies a
site of 4.45 acres and has an additional ancillary car park of 0.86 acres. The
property is fully let to Fiberweb Geosynthetic Limited with the guarantor
being Chicopee Holdings BV. The tenant forms part of the Berry Global Group
which has been listed on the New York Stock Exchange since October 2012. The
current lease term expires on 28(th) November 2032, offering a term certain of
9 years 7 months. The lease is fully repairing and insuring, and the current
passing rent is £3.94psf equating to £319,383 per annum.

The property has been acquired for £3,725,000, exclusive of costs, which
represents a net initial yield of 8%. The total transaction costs including
Welsh stamp duties are 6.8%. The acquisition will be funded by utilising part
of the cash held from the sale of Llantrisant which occurred on 8 February
2023.

Commenting on the acquisition, chief executive Paul Leaf-Wright said "We are
pleased to have redeployed part of the proceeds of £7.85m, received from the
recent sale of our Llantrisant property, into a quality income producing asset
that complements the existing portfolio. It builds on our strategy of adding
to the long-term income of the company to ensure we deliver attractive
earnings to our shareholders with defensive assets that offer both rental and
capital growth. The lease term improves our overall weighted average unexpired
lease term.

The board will look to deploy the remaining proceeds and will inform
shareholders once further transaction(s) have been completed.

 For further information contact:

Highcroft Investments PLC:

Paul Leaf-Wright / Roberta Miles 01869 352766

 

Singer Capital Markets

Peter Steel / Alex Emslie - Investment Banking

+44 (0)20 7496 3000

 

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