15 Nov 2018 18:04
15 November 2018
Sale and Leaseback of property
Flybe Group PLC (Flybe) announces the entering into and completion today of sale and leaseback arrangements in relation to Hangar 1 of the New Walker Hangar, Exeter International Airport, Devon ("Property"), which forms part of its headquarters, as follows:
(a) sale of the headlease and underlease of the Property in return for a payment to Flybe Limited of £5,000,000 (plus VAT); and
(b) a new lease of the Property made between Flybe Limited (with Flybe Group PLC acting as guarantor) and Exeter & Devon Airport Limited for a term of 25 years and an annual rent of £515,000 per annum (plus VAT). The lease is subject to: (i) rent review every 5 years from the effective date of the lease; and (ii) the option for Flybe to break the lease in 2028 by serving not less than 12 months' written notice.
The net proceeds of the transaction will be used for general working capital purposes in accordance with Flybe's comprehensive strategic review announced on 14 November 2018.
Enquiries
Maitland +44 (0) 207 379 5151
Andy Donald
LEI Number: 5493005SC6523Y8KJF24