REG - Highcroft Invs PLC - Warehouse Property Acquisition

Highcroft InvestmentsAnnouncement

26/05/2023 07:00

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RNS Number : 7321A  Highcroft Investments PLC  26 May 2023

26 May 2023

Highcroft Investments PLC

Warehouse Property Acquisition

The Board is pleased to announce that Highcroft Investments PLC, via its
property owning subsidiary Rodenhurst Estates Ltd, yesterday completed on the
acquisition of the freehold interest of a property being units 1-7 Bluestem
Road, Ipswich, Suffolk IP3 9UH.

The property, acquired from Monte Blackburn Limited, comprises 2 semi-detached
and 1 detached unit totalling 49,196 sq ft. The units occupy a site of 2.19
acres. The property is fully let to Branded Garden Products Limited (t/a
Thompson & Morgan), one of the UK's largest mail-order seed, plant and
garden product retailers. The tenant took occupation of the building on a new
10-year lease from 31st May 2022 and expiring 30th May 2032. The lease is
subject to a Tenant break option on 31st May 2027, offering a term certain of
4 yrs. The lease is fully repairing and insuring subject to a schedule of
condition, and the current passing rent is £7.49 psf equating to £368,500
per annum.

The property has been acquired for £5,500,000, exclusive of costs, which
represents a NIY of 6.3%. The acquisition will be funded by utilising the
remaining cash from the sale of the Llantrisant asset on 8 February 2023
together with £2m of existing cash resources.

Commenting on the acquisition, chief executive Paul Leaf-Wright said "We are
pleased to have redeployed the remaining part of the net proceeds of £7.76m
received from the recent sale of our Llantrisant property, into a well-located
logistics asset that offers particularly good prospects for capturing rental
growth going forward. This further adds to our existing strategy of generating
sustainable long-term income for our shareholders. This now concludes the
redeployment of the Llantrisant cash proceeds, and the focus will continue to
be on ensuring the performance of the assets in the Company."

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

This announcement contains inside information for the purposes of Article 7 of
Regulation (EU) No 596/2014 which is part of UK law by virtue of the European
Union (Withdrawal) Act 2018.

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