Conygar Inv Regulatory News (CIC)

4 Oct 2006 13:59

Conygar Investment Company PLC(The)04 October 2006 THE CONYGAR INVESTMENT COMPANY PLC ACQUISITION OF LONDON OFFICES FOR £33.9 MILLION The directors of the Conygar Investment Company PLC ("Conygar" or the "Company")are pleased to announce that Conygar Strand Limited, ("CS Limited") hasexchanged contracts to acquire eight buildings in Buckingham Street, London WC2for a total cash consideration (including costs) of £33.9 million. The Company will invest an estimated £3.46 million in CS Limited to satisfy theconsideration due and the related costs of the acquisition. The Royal Bank ofScotland will provide a £29 million non-recourse structured finance facility toCS Limited. The balance of the consideration due will be satisfied from a thirdparty investment in CS Limited. Conygar's investment in CS Limited will besatisfied out of existing cash resources. Conygar will be entitled to 70 percent of any profit realised. The properties comprise approximately 54,000 sq ft of freehold single andmulti-let office accommodation of which 36.000 sq ft is currently let to aroundtwenty tenants and generates an income of approximately £1 million per annum.Of the remaining 18,000 sq ft, the Company is in advanced letting negotiationsin respect of some 11,000 sq ft whilst the remaining 7,000 sq ft will berefurbished and then re-let. Completion is expected to occur within ten working days. The properties offer significant active management potential which Conygarintends to exploit and realise within the next twenty four months. Robert Ware, Chief Executive of Conygar, commented: "This is another excellent opportunity for Conygar to add and realisesignificant value using our property management skills to restructure theportfolio which will then be disposed of in individual lots." For further information please contact: The Conygar Investment Company PLC Robert Ware 020 7408 2322 Steven Vaughan 020 7408 2322 Deloitte Corporate Finance Richard Collins 020 7936 3000 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