REG-Panther Securities: Property acquisition and information on Beales CVA <Origin Href="QuoteRef">PNS.L</Origin>

Panther SecuritiesAnnouncement

08/03/2016 17:20

8 March 2016

                           Panther Securities P.L.C.                           

                         ("Panther" or the "Company")                          

    Property acquisition and information on J E Beale plc Company Voluntary    
                                  Arrangement                                  

Panther announces that it has acquired Lord Street Properties (Southport)
Limited, a company established as owners of Broadbents Department Store in 1896
which was in the same family until the trading operations were transferred to
the Beales group in 1990 with Lord Street Properties retaining the freehold
interest.  This company subsequently acquired the Wayfarers Arcade freehold,
which is the prime arcade in Lord Street, Southport and reputed to be one of
the finest Victorian arcades in the country.

With the adjoining properties in Lord Street, which are currently occupied by
Beales Department store, the freehold properties contain approximately 75,000
sq ft of retail and ancillary space on a site of about 2 acres most of the
property being listed.  To the rear of the site there are two car parks, for
the use of customers of the store and arcade and a separate warehouse rented by
Beales.

The properties produce a gross income of approaching £650,000 of which
approximately one third is derived from the Beales department store.  The
Arcade contains forty eight units of which eight are vacant with a potential
extra value of £85,000 per annum.

Panther has a close relationship with Beales and knows that this is a
profitable store.  The price paid for Lord Street Properties (Southport)
Limited, which has no debts, will be approximately £4,500,000 including costs
and was paid out of Panther's free cash generated from previously announced
property disposals.

In due course, it will be charged under Panther's new borrowing facilities
currently being finalised.

Yesterday J E Beale Plc ("Beales") proposed a landlords only creditors' Company
Voluntary Arrangement ("CVA").  Panther now owns twelve out of the Beale
Group's freehold department stores. The first eleven purchased have separate
leases agreed between Beales and the Anglian Regional Co-operative Society
(ARCS) prior to Panther's acquisition of them from ARCS. 

The following figures exclude the Southport store:  Beales pay approximately £
800,000 per annum rent for the eleven stores owned by Panther, of which two
trade at a loss and will be compromised in exactly the same manner as
unconnected landlords to 30% of the current rental payable.  This would cost
the group approximately £200,000. However, Panther expects to be able to re-let
the properties by the time they may become vacant in 10 months.

The Directors would remind shareholders that the Panther Group's rental income
is almost £13,000,000 per annum and they expect all of the freeholds that
Beales continues to trade from will have a better value following a successful
CVA as a result of having a financially stronger tenant and thus Beales has
Panther's full support for its current proposals.

For further information:

Andrew Perloff, Panther Securities plc:           Tel: 01707 667 300   
                                                                       
Simon Peters, Panther Securities plc:             Tel: 01707 667 300   
David Worlidge, Sanlam Securities UK Limited      Tel: 020 7628 2200   
                                                                       



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