Conygar Inv Regulatory News (CIC)

19 December 2011

THE CONYGAR INVESTMENT COMPANY PLC

ACQUISITION OF PROPERTIES

The Conygar Investment Company PLC ("Conygar") is pleased to announce that it has simultaneously exchanged and completed on the acquisition of nine freehold and long leasehold properties from a consortium including Edinmore Group and Buccleuch Property, for a total cash consideration of £39.9 million.

The annual rent roll is approximately £4.22 million representing a net initial yield of 10.56%. The weighted average lease length is 4.26 years with 89% occupancy. The consideration will be satisfied out of Conygar's existing cash resources. The directors expect that the portfolio will be refinanced in due course in order to release additional funds for further business opportunities.

The portfolio consists of:

Ashby Park, Ashby de la Zouch

Three office freehold buildings totalling 95,000 square feet let to three tenants, Alstom Power, Findel Education and Hill Rom Limited, on leases with a weighted unexpired term of 4.96 years and total rental income of £1,059,000 pa. There is also a well located 3 acre development site which offers further opportunities.

Norfolk House, Birmingham

This 115,000 square foot freehold building consists of 89,000 square feet of office space with the balance being retail space and is located next to the Bull Ring in Birmingham City centre. It should benefit from the nearby redevelopment of New Street Station. The current rental income is £949,533 pa.

Watt Place, Hamilton International Technology Park, Blantyre

A 34,300 square foot freehold industrial unit let to motor vehicle component manufacturer CTS Corporation UK Limited on a lease expiring in February 2016. The company also occupies other premises nearby so there is an opportunity to re-gear the lease at the appropriate time. The current rental income is £189,000 pa.

Compass House, Dundee

A 30,500 square foot heritable office building in Dundee's prime waterfront location that is let to The Scottish Ministers until March 2019. Total rental income is £380,000 pa.

Witham Park House, Lincoln

This is a former factory divided into three separate freehold blocks and converted into 101,000 square feet of offices. The majority of the building is let to Lincolnshire County Council with lease expiry dates ranging from 2012 to 2018. The building is fully occupied and a number of key services are located here so we are optimistic that the Council will look to remain. Current rental income is £585,000 pa.

Charles House, Northampton

A 28,600 square foot freehold building built over 5 floors all let on a number of short leases. The property is well maintained and vacant space has let well to date. Current rental income is £194,000 pa.

Tollgate Business Park, Stafford

A 55,000 square foot freehold industrial/office building let to Elster Metering until April 2015 at £291,000 pa.

1 Cotham Street, St Helens

This 41,600 square foot freehold building is let to Wilkinsons at £466,000 pa and is purpose built for them. It offers a lease re-gearing opportunity upon expiry of the lease in October 2015.

Network House, Wolverhampton

This 33,300 square foot freehold building consists of 14,000 square feet of offices and 19,300 square feet of retail space. The existing office accommodation is currently vacant, however the property offers a considerable redevelopment opportunity and we are evaluating the various alternatives. Current rental income is £113,000 pa.

Robert Ware, Chief Executive of Conygar, commented:

"This is an excellent off-market opportunity for Conygar, which is consistent with our strategy of acquiring assets and development opportunities where we can add further value. It is a high yielding portfolio with a good spread of risk and offering considerable upside from both lease re-gears and development opportunities. The assets are a good fit with our existing portfolio and will generate surplus cash from day one."

Enquiries:

The Conygar Investment Company PLC

Robert Ware: 020 7258 8670

Steven Vaughan: 020 7258 8670

Oriel Securities Limited (Nominated Adviser and Broker)

Michael Shaw: 020 7710 7600

Neil Langford: 020 7710 7600

Temple Bar Advisory (Public Relations)

Alex Child-Villiers: 07795 425580

Alina Ulkina: 020 7002 1080