Circle Property PLC Valuation and Trading update (3790C)
13 April 2017 - 4:00PM
UK Regulatory
TIDMCRC
RNS Number : 3790C
Circle Property PLC
13 April 2017
13 April 2017
Circle Property Plc
("Circle" or the "Company")
Active asset management drives 19.7% value growth in Circle's
regional UK portfolio
Valuation and Trading update
Circle Property Plc ('Circle'), the UK property investment,
development and management company that specialises in regional
offices, provides the following update on trading ahead of its
preliminary results for the 12 months ended 31 March 2017, which
will be announced in July 2017.
Portfolio Valuation
The independent valuation of Circle's portfolio as at 31 March
2017 shows strong growth in the value of its portfolio, which is
comprised largely of regional office properties, with a 19.7%
increase since 31 March 2016. This is largely attributable to the
Company's ongoing asset management programme. Following a 16.3%
uplift in portfolio valuation in the first half, there has been a
further 4.4% increase in valuation to GBP93.025 million in the
second half, from GBP89.105 million at 30 September 2016.
Highlights include:
-- Having secured planning permission for a change of use on the
ground floor of Somerset House, Temple Street in Birmingham's CBD,
from offices to A3 restaurant in the first half of the year, Circle
has quickly agreed a 20 year lease with the popular Latin American
restaurant, Las Iguanas, at a rent of GBP220,000 per annum.
-- The extensive refurbishment programme at 36 Great Charles
Street, Birmingham, is now near completion and has driven a 77%
increase in value at the 26,000 sq ft multi-let office building,
uplifting ERV to GBP500,000 per annum.
John Arnold, CEO of Circle Property plc, commented: "To have
achieved such a significant increase in valuations, largely through
active asset management rather than through acquisitions or yield
compression, is a strong endorsement of not only the level of
expertise offered by our team, but also of the value inherent in
our portfolio of regional UK properties.
Our focus remains on understanding the requirements of occupiers
in these key and undersupplied regional business markets, such as
Birmingham and Milton Keynes, and delivering high quality space
that meets this demand, allowing us to maintain our liquidity and
deliver meaningful value to our shareholders. We continue to
progress both our redevelopment and refurbishment pipeline as we
look to lease the new space that we have created and to
opportunistically acquire new assets while, at the same time,
undertaking strategic disposals of non-core and ex-growth
assets."
ENDS
For further information please contact:
+44 (0)20 7930
Circle Property Plc 8503
John Arnold, CEO
Edward Olins, COO
+44 (0) 20 7418
Peel Hunt (Nominated Advisor to the Group) 8900
Capel Irwin
Edward Fox
+44 (0)20 3727
FTI Consulting 1000
Richard Sunderland
Giles Barrie
Polly Warrack
This information is provided by RNS
The company news service from the London Stock Exchange
END
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