KCR Residential REIT PLC Disposal of subsidiary (1786K)
12 December 2018 - 6:00PM
UK Regulatory
TIDMKCR
RNS Number : 1786K
KCR Residential REIT PLC
12 December 2018
12 December 2018
KCR Residential REIT plc
Disposal of subsidiary
KCR Residential REIT plc ("KCR" or the "Company) announces that
it has today sold its wholly owned subsidiary, KCR (Cygnet) Limited
("Cygnet") to a subsidiary of Inland Homes plc ("Inland") for a
cash consideration of GBP1.14 million, subject to adjustment upon
finalisation of the completion accounts. Cygnet owns two long
leases on supermarket sites in southeast England and the sale
includes the associated debt facility.
KCR acquired Cygnet on 29 June 2018 from Inland. Sale proceeds
excluding costs are approximately the same as the acquisition cost
of Cygnet. Cygnet was valued at GBP1.5 million net of debt in KCR's
financial statements at 30 June 2018. The proceeds of sale will be
used to reduce the Company's indebtedness. The disposal is
consistent with the Company's investment strategy to invest
primarily in residential housing.
The sale is classified as a related party transaction under the
AIM Rules as Inland is interested in 12.6 per cent of the Company's
share capital. The Directors consider, having consulted with Arden
Partners, the Company's nominated adviser, that the terms of the
transaction are fair and reasonable insofar as the shareholders are
concerned.
For further information, please contact:
KCR Residential REIT plc info@kcrreit.com
Dominic White, Chief Executive +44 20 3793 5236
Arden Partners plc
Tom Price/ Benjamin Cryer +44 20 7614 5917
Notes to editors:
KCR's objective is to build a substantial residential property
portfolio that generates secure income flow for shareholders
through the acquisition of SPVs (Special Purpose Vehicles) with
inherent historical capital gains. The Directors intend that the
group will acquire, develop and manage residential property assets
in residential areas in the UK.
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Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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