Company update (9893C)
16 March 2011 - 6:00PM
UK Regulatory
TIDMOTE
RNS Number : 9893C
O Twelve Estates Limited
16 March 2011
O Twelve Estates Limited ("O Twelve" or the "Company")
Sale of Solar House and Management Update
16 March 2011
O Twelve announces that it has completed the disposal of Solar
House, Stratford, for a cash consideration of GBP5.5 million. Solar
House is a 49,000 sq ft office building which, following lease
expiries, was 80% vacant at completion. The sale removes both the
need for the Company to commit cash to refurbishment costs prior to
re-letting and a significant exposure to ongoing void holding
costs.
The sale proceeds have been placed on a restricted deposit
account and are available for repayment of debt or, with the
agreement of the Group's Lenders, for potential future property
acquisitions.
Since 30 September 2010, the Group has also realised GBP650,000
on the disposal of a further vacant office unit at Redwing Court,
Romford and has completed nine new leases with an aggregate annual
rent, payable on completion of rent-free periods, of
GBP221,000.
Following completion of the Placing and Open Offer and receipt
of GBP35 million net cash in January, and the sale of Solar House,
the Group's net debt as at 28 February 2011 was GBP105 million (30
September 2010: GBP142 million), comprising GBP125 million loan
principal less restricted cash of GBP12 million and unrestricted
cash of GBP8 million.
Phil Rhodes, Chairman of O Twelve commented:
"The sale of Solar House both removes a substantial potential
cost exposure and adds to the Company's now significant cash
resources. This provides us with a number of opportunities both to
continue to add value to the existing portfolio through active
management and to consider new property ventures."
Enquiries
O Twelve Estates Limited
Phil Rhodes, Chairman
+44 (0)207 016 0050
Rugby Asset Management
David Tye
Andrew Wilson
+44 (0) 20 7016 0050
Fairfax I.S. PLC
Simon Bennett
Katy Birkin
Laura Littley
+44 (0) 20 7598 5368
Financial Dynamics
Dido Laurimore
Stephanie Highett
Laurence Jones
+44 (0) 20 7831 3113
This information is provided by RNS
The company news service from the London Stock Exchange
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