Urban&Civic plc Urban&Civic sells Stansted Hotel (7516T)
17 October 2017 - 5:00PM
UK Regulatory
TIDMUANC
RNS Number : 7516T
Urban&Civic plc
17 October 2017
17 October 2017
Urban&Civic plc
Urban&Civic sells Stansted Hotel to reinvest in further
residential Master Development
Urban&Civic plc announces that it has sold the recently
completed Hampton by Hilton hotel at Stansted Airport to LGIM Real
Assets (Legal & General) for a minimum consideration of GBP48.3
million. An additional sum of up to GBP1.1 million will be paid to
Urban&Civic, depending upon operational performance over the
next two years. The new hotel opened for trading in late July 2017
and is one of only two that are on-terminal at Stansted. Initial
occupancy levels and achieved room rates are running above
pre-opening forecasts.
The minimum consideration represents a projected yield on
stabilised EBITDA three years forward of 6.75 per cent and is 15
per cent higher than the EPRA valuation of the completed asset in
the interim balance sheet as at 31st March 2017. Profit realised on
actual cost is expected to be in the order of GBP8.5 million. Cash
returned back into the business, after accounting for development
project bank debt, will exceed GBP30.0 million.
Proceeds of the sale will be directed into the Master
Development of further strategic projects in which Urban&Civic
is now the market leader. Shareholders can anticipate the early
announcement of investment in new large-scale projects, consistent
with the Company's strategy to accelerate quality housing delivery
in areas of high demand and population growth.
Commenting upon the sale Nigel Hugill, Chief Executive,
said:
"The sale of Stansted represents an obviously strong outcome for
the Group but the core reason for establishing Urban&Civic was
to provide new housing choices and accelerate supply through Master
Development. That involves creating environments in which people
actively want to live and a delivery structure that encourages
speed and quality from those housebuilders looking to expand
output. The model can be seen to be working and is directly
consistent with current Government policy. We shall be going all
out from here. "
-ENDS-
For further information, please contact:
Urban&Civic plc 020 7509 5555
Nigel Hugill /David Wood
FTI Consulting
020 3727 1000
Giles Barrie /Ellie Sweeney /Dido Laurimore
urban&civic@fticonsulting.com
Notes:
About Urban&Civic plc
Urban&Civic plc is an established UK property development
and investment company listed on the London Stock Exchange's main
market (UANC), with total assets valued at over GBP460 million (31
March 2017).
Headquartered in London and with a network of regional offices,
Urban&Civic's team is led by Nigel Hugill, CEO, and Robin
Butler, Managing Director. The Company has significant in-house
expertise across site assembly, planning, project management,
delivery, community engagement and sales.
Strategic land constitutes the core of Urban&Civic's
business model where, as Master Developer, it owns or has the
stewardship of over 4,500 acres across five sites located close to
Cambridge, Huntingdon, Newark and Rugby. These sites will deliver
more than 22,000 new homes, over six million sqft of business
space, and at least eleven primary and three secondary schools over
the next 15 to 20 years.
Proud to be defined by the quality of its projects,
Urban&Civic is distinguished by its emphasis as Master
Developer on the leveraged benefits that can be delivered from
Strategic Sites. These include the creation of new jobs and
enhanced skills as well as the delivery of real opportunities for
local communities and stakeholders.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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