Conygar Inv Regulatory News (CIC)

2 May 2006 07:01

Conygar Investment Company PLC(The)02 May 2006 2 May 2006 THE CONYGAR INVESTMENT COMPANY PLC ACQUISITION OF LONDON OFFICES FOR £57.8 MILLION The directors of the Conygar Investment Company PLC ("Conygar" or the "Company")are pleased to announce that Conygar Bedford Square Limited, ("CBS Limited) hasexchanged contracts to acquire a terrace of fourteen office properties inBedford Square, London WC1 from The Crown Estate for a total cash consideration(including costs) of £57.8 million. The Company will invest an estimated £4.95 million in CBS Limited to satisfy theconsideration due and the related costs of the acquisition. The Royal Bank ofScotland will provide a £52.75 million non-recourse structured finance facilityto CBS Limited. The balance of the consideration due will be satisfied from athird party investment in CBS Limited. Conygar's investment in CBS Limited willbe satisfied out of existing cash resources. Conygar will be entitled to 75 percent of any profit realised. The properties comprise approximately 95,516 sq ft of freehold officeaccommodation and are currently let to nine tenants including the Secretary ofState for the Environment and The London School of Hygiene and TropicalMedicine. Two of the buildings totalling 11,952 sq ft are currently vacant andrepresent refurbishment opportunities. Current income is approximately £2.62million per annum. Completion is expected to occur within 10 working days. Conygar will seek to add value through active asset management and to realisethis value within the next twenty four months. Robert Ware, Chief Executive of Conygar, commented: "We are excited by this investment which provides an excellent opportunity toadd and indeed realise significant value through our core property managementand structuring skills." For further information please contact: The Conygar Investment Company PLC Robert Ware 020 7725 0360 Steven Vaughan The directors of Conygar accept responsibility for the information contained inthis announcement. To the best of the knowledge and belief of the directors ofConygar (who have taken all reasonable care to ensure that such is the case) theinformation contained in this announcement is in accordance with the facts anddoes not omit anything likely to affect the import of such information. This information is provided by RNS The company news service from the London Stock Exchange