Last checked at 18 Nov 2009 07:00
18 November 2009
The Conygar Investment Company PLC
Acquisition of Properties for £44.6 million
The directors of The Conygar Investment Company PLC ("Conygar") are pleased to announce that Conygar has exchanged contracts to acquire seven freehold and long leasehold buildings for a total cash consideration (including costs) of £44.6 million.
The portfolio consists of:
Brennan House, Farnborough Aerospace Centre, Hampshire
Aker Village (three units), Kirkhill, Aberdeen
Cambridge Road, Whetstone Business Park, Leicester
Kelvin II, Kelvin Close, Birchwood Park, Warrington
Crystal Drive, Sandwell Business Park, Oldbury, West Midlands
The annual rent roll is approximately £4.41 million representing a net initial yield of 9.9% and the buildings comprise 562,000 square feet of lettable space. All buildings are fully let and key tenants include Hewlett Packard Limited, Johnson Controls Limited, Cadbury UK Limited and Aker Solution ASA.
The properties offer significant active management and development potential, which Conygar intends to exploit and realise in due course.
Completion is expected to occur within five working days. The consideration will be satisfied out of Conygar's existing cash resources using part of the funds raised in September 2009 in accordance with our stated strategy. The directors expect that the portfolio will be refinanced in due course in order to release additional funds for further business opportunities.
Robert Ware, Chief Executive of Conygar, commented: "This is an excellent opportunity for Conygar to add and realise significant value using our property management skills to restructure the portfolio. Negotiations included the vendor's bank and we were able to exchange within 10 working days. With this track record, we hope to do more similar deals."
For further information please contact:
The Conygar Investment Company PLC
Robert Ware: 020 7408 2322
Peter Batchelor: 020 7408 2322
Oriel Securities Limited
Michael Shaw: 020 7710 7600
Gareth Price: 020 7710 7600
Temple Bar Advisory Limited (Public Relations)
Alex Child-Villiers: 07795 425 580
Conygar was advised on this transaction by Oriel Securities Limited.
The directors of Conygar accept responsibility for the information contained in this announcement. The best of the knowledge and belief of the directors of Conygar (who have taken all reasonable care to ensure that such is the case) the information contained in this announcement is in accordance with the facts and does not omit anything likely to affect the import of such information.