Circle Property PLC Acquisition of Concorde Park, Maidenhead (5275I)
09 August 2019 - 4:00PM
UK Regulatory
TIDMCRC
RNS Number : 5275I
Circle Property PLC
09 August 2019
9 August 2019
Circle Property Plc
("Circle" or the "Company")
Circle acquires Maidenhead office park for GBP14.6 million
Circle Property Plc (AIM: CRC), which invests in, develops and
actively manages well-located regional office assets, is pleased to
announce the acquisition of Concorde Park, Concorde Road,
Maidenhead, a south east office park for GBP14.6 million.
The 71,500 sq ft park is currently 36.6% let to three tenants
producing a combined rental income of GBP627,372 per annum. There
is a vacant area of 45,328 sq ft with 21,346 sq ft under offer or
in negotiation. The property benefits from being rebuilt in 2007 by
LaSalle UK Ventures Property to a high specification including four
new lifts, air conditioning and full height glazed atriums at a
cost of around GBP7.4 million.
The acquisition of this well-located property, which is set to
benefit from Crossrail, was primarily funded by a GBP12.791 million
drawdown from the Company's recently agreed GBP100 million bank
facility with RBS and HSBC. The acquisition price represents a net
initial yield of 4.03% with a potential reversionary yield of 9.8%
once fully let.
John Arnold, Chief Executive of Circle Property Plc, said:
"We are pleased to have completed this acquisition of Concorde
Park for a consideration of GBP14.6 million. We believe we can add
significant value to the property using our expertise in active
asset management to drive rents. This acquisition is a further
demonstration of Circle's successful strategy which has driven
sector leading returns since its IPO in 2016."
ENDS
This announcement is inside information for the purposes of
Article 7 of EU Regulation 596/2014.
+44 (0)207 930
Circle Property Plc 8503
John Arnold, CEO
Edward Olins, COO
+44 (0)207 397
Cenkos Securities 8900
Azhic Basirov
Katy Birkin
+44 (0)203 897
Radnor Capital 1830
Joshua Cryer
Iain Daly
+44 (0)203 757
Camarco 4980
Ginny Pulbrook
Tom Huddart
About Circle Property Plc
Circle is the best performing quoted UK real estate company by
NAV total return (NAV growth and dividend)(1) having delivered
consistent returns with 86% NAV growth since IPO in 2016 in
absolute terms.
Circle focusses on acquiring assets in regional cities, many of
which have significant office supply constraints, and on office
assets with active management potential (refurbishment
opportunities, under-rented or vacant properties or short leases),
rather than just maximising initial rental yields.
Circle is not a Real Estate Investment Trust (REIT) and can
actively recycle proceeds from asset sales into its refurbishment
and redevelopment pipeline, as well as future investment
opportunities, therefore targeting a broader range of returns for
shareholders, which are primarily driven by NAV growth.
As well as already delivering substantial increases in NAV, the
Company's portfolio has significant reversionary potential with
total estimated rental values post today's acquisition of GBP10.34m
per annum, compared to contracted rent of GBP7.61m at 31 March
2019. Post today's acquisition, the Company has a portfolio of 16
regional commercial property investment and development assets in
the UK valued at GBP139.2m.
(1) Source: Radnor Capital research, 31 March 2019
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END
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