Ground Rents Income Fund PLC AGM Statement (6898P)
12 February 2019 - 6:00PM
UK Regulatory
TIDMGRIO
RNS Number : 6898P
Ground Rents Income Fund PLC
12 February 2019
Ground Rents Income Fund plc
("GRIO" or the "Company")
AGM Statement
Malcolm Naish, the Chairman of Ground Rents Income Fund plc
(LSE: GRIO), a listed real estate investment trust investing in UK
ground rents, will make the following statement at today's Annual
General Meeting of the Company.
"Further to the announcement made on 1 February 2019 regarding
the High Court judgment which has been handed down in connection
with the Company's wholly owned subsidiary North West Ground Rents
Limited ('NWGR'), the Company and NWGR continue to take advice on
how best to respond to the judgment.
"The court ordered the temporary hoardings which had been
erected by Carillion outside the hotel as an exclusion zone to be
removed by 28 February 2019. It is expected that the completion of
their removal will be finished within days.
"The cost of the permanent remedial works to the façade of
Beetham Tower, Deansgate, Manchester, has been estimated by NWGR's
advisers, based on their recommended solution, to be approximately
GBP4.0million, excluding VAT, any professional advisory costs and
damages yet to be determined. Carillion was the contractor which
constructed the building and from the date the faults in the façade
were discovered in the summer of 2014, with its subcontractor BUG,
began investigating the solution to the faults and how repairs
could be put into place. These investigations and remedial work
proposals were in the final phases of planning when Carillion went
into compulsory liquidation in January 2018.
"NWGR is pursuing the proceedings it has already issued against
Carillion through its insurers and the sub-contractor BUG, through
existing warranties and indemnities, which, if successful, would
greatly limit any potential liabilities or irrecoverable losses for
NWGR.
"However, in order to comply with the judgment NWGR will be
required to finance the remedial work and any litigation costs
while seeking recovery from Carillion's Insurers and BUG. There can
be no guarantee that NWGR will be successful in that recovery, but
it has received legal and expert advice which suggests that its
case is strong.
"If NWGR is unsuccessful in its action against the original
contractor's insurers or the sub-contractor, it may be able to
recover some of the remedial works costs from other parties.
"NWGR is reliant on the financial support of the Company to
finance further legal action and to comply with the judgment. The
Company continues to review its own obligations in regard to NWGR
and NWGR's obligations under the judgment.
"The Company will keep shareholders informed of progress and
provide a further update as and when appropriate.
"I am pleased to report that, in all other respects, the Company
is trading in line with the directors' expectations"
Contacts:
Ground Rents Income Fund plc
Simon Wombwell (Director) 020 7499 6424
Brooks Macdonald Funds Limited
James Agar (Head of Specialist
Funds) 020 7659 3454
N+1 Singer (Broker)
James Maxwell / Ben Farrow 020 7496 3000
Tavistock (Media)
James Whitmore / Jeremy Carey 020 7920 3150
Appleby Securities (Channel
Islands) Limited (Sponsor)
Andrew Weaver/Zim Ceko 01534 818230
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END
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