Circle Property sells properties in Bristol, London for GBP27 million

(Alliance News) - Circle Property PLC said on Friday it has sold two properties in Bristol and London for GBP27.1 million in total.

The Jersey-based investment and development company said it had disposed of its One Castle Park property in Bristol for GBP20 million.

This represents a 3.6% increase on the property's valuation at the end of March of GBP19.3 million.

In line with the company's commitment to reduce its gearing, GBP18 million of the sale proceeds will be used to repay a part of its financing facility. Following the repayment, the total amount drawn down under the facility will reduce by 30% to GBP40.5 million from GBP58.5 million.

In addition, Circle Property announced that it has agreed to sell its 141 Moorgate property in London to Moorgate Properties Ltd for GBP7.1 million.

The company said that the cash proceeds from the sale will also be used to reduce the company's gearing.

Chief Executive John Arnold said: "The disposal of One Castle Park allows the company to significantly reduce its loan-to-value... and the GBP750,000 gain over the March 31 valuation, makes a sizeable contribution to this year's profit, with the sale of 141 Moorgate contributing a similar amount over the September 30 valuation."

Shares in Circle Property were up 2.3% at 205.62 pence on Friday afternoon in London.

By Heather Rydings; heatherrydings@alliancenews.com

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