Dukemount Capital PLC Update on First Acquisition in £5m Portfolio (2193N)
07 August 2017 - 4:00PM
UK Regulatory
TIDMDKE
RNS Number : 2193N
Dukemount Capital PLC
07 August 2017
07 August 2017
Dukemount Capital Plc
("Dukemount" or the "Company")
Update on First Acquisition in GBP5m Portfolio
Dukemount Capital plc, the Real Estate Development Company in
the property sector, announced on 25 May 2017 that a binding letter
of intent (LOI) had been signed for a period of two years whereby
Dukemount and Larch Housing Association Limited (Larch) will
identify properties, with a minimum total portfolio value of GBP5
million and which are suitable for leasing to Supported Living
tenants.
Dukemount will acquire the identified properties, subject to
valuation, due diligence and contract on the basis that LHA agrees
to sign a 50-year lease at 6.5% per annum plus CPI based on the
purchase price, prior to any firm commitment by Dukemount.
The first property has been identified and due diligence has
been undertaken. This first acquisition will be developed into
several apartments for the supported living sector. Dukemount
expects to be able to announce completion of this acquisition in
the coming weeks, which is subject to satisfactory completion of
the due diligence.
This initial deal of GBP5 million is the first one aimed at
filling the pipeline of properties that Dukemounts institutional
contacts are keen to see and fund. As highlighted during the
listing process, and in the investor presentation available on the
Company's website (www.dukemountcapitalplc.com.), the management
team will continue to work to source these transactions to provide
products for long term investing institutions in need of CPI linked
yields.
Dukemount has also commenced due diligence on a second
acquisition, again in conjunction with Larch Housing Association,
which will involve the refurbishment of an existing building.
Each property in the portfolio in this deal with Larch Housing
will be focused on the supported living sector with rents arranged
beforehand with the Housing Association and adjusted annually by
inflation over the full period of the lease.
Dukemount Executive Chairman Geoffrey Dart said, "We are at a
stage in the first acquisition where we feel confident of updating
our shareholders of meaningful progress. As we are developing this
asset ourselves it should produce additional earnings to Dukemount
as although an acquisition from a property developer will be
quicker, they will have already taken a profit from the development
- as the asset is held by trustees in a large organisation, the
process has been a little more complicated than we would expect to
encounter with other acquisitions. The second acquisition is, so
far, a more straightforward deal and I look forward to updating
shareholders on this in the very near future. We continue to be,
approached by a number of housing associations and development
providers around the UK and look forward to updating shareholders
when appropriate."
Market Abuse Regulation (MAR) disclosure
Certain statements in this announcement contain inside
information for the purpose of Article 7 of EU Regulation
596/2014.
For further information, please contact:
Dukemount Capital Plc Tel: +44 (0) 7874 762
821
Timothy Le Druillenec
Walbrook PR (Media and Tel: +44 (0) 207 933
Investor Enquiries 8780
Paul Cornelius / Gary dukemountcapital@walbrookpr.com
Middleton
Optiva Securities Ltd Tel: +44 (0) 203 137
1906
Christian Dennis - Corporate
Broker
Jeremy King - Corporate
Broker
Peterhouse Corporate Tel: +44 (0) 207 469
Finance Limited 0930
Lucy Williams/Duncan
Vasey
Notes to Editors:
The supported living sector is a fast-growing sector as more
recipients are choosing to have an active place in the community
and is one area which ties in with Dukemounts plan of offering
attractive returns to yield seeking institutions and our
shareholders whilst also being socially relevant.
Supported living and social housing assets provide long-dated,
secure and inflation-linked income which is very attractive to
institutional investors at a time when bond yields are sitting at
record lows. Grant funding for housing associations from central
government has been heavily cut since the financial crisis and they
do not enjoy the same access to debt. This has led to housing
associations turning to institutions to fund the building of much
needed supported living and social housing.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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