28 Sep 2016 07:00
28 September 2016
GAME DIGITAL PLC
SALE & LEASEBACK OF UK DISTRIBUTION CENTRE AND HEAD OFFICE
GAME Digital plc ("GAME" or the "Group") announces that it has exchanged contracts with Portsmouth Estates Developments Limited for the sale of the Group's freehold property interests of the distribution centre and head office buildings located in Basingstoke, UK and the immediate leaseback of these premises.
The Group will continue to operate its principal UK business activities from its Basingstoke head office and continue to use its distribution centre as its primary UK store and online storage and fulfilment centre.
The new lease for the distribution centre and head office property is for an initial 17 year term with a tenant only break clause after 12 years and an annual rent on commencement of £1.06 million. The rent will be subject to upward only rent reviews every five years. The first rent review will be to the higher of open market value or £1.13 million per annum and all subsequent reviews will be reset to open market value.
Completion is scheduled for 7 October 2016. The total cash consideration payable to GAME by Portsmouth Estates Developments Limited is £13.5 million. The properties are held on the Group's balance sheet at £7.0 million and the sale will give rise to an exceptional gain for the Group of £6.2 million, after transaction costs of £0.3 million, in the financial year ending 29 July 2017. No profits of the Group are attributable to these assets.
The proceeds of the sale will be retained in the Group and be used to re-invest in the business.
For further information:
GAME Digital plc | +44 (0) 1256 784 000 |
Mark Gifford James Staveley | Chief Financial Officer Investor Relations & Corporate Development Director |
Citigate Dewe Rogerson |
+44 (0) 20 7638 9571 |
Grant Ringshaw Jos Bieneman
| |
This announcement contains inside information for the purposes of Article 7 of Regulation (EU) No 596/2014
Notes to editors
GAME Digital plc is a leading gaming company, providing an authoritative range of gaming and gaming lifestyle related products and services to its customers. GAME's UK and Spanish retail businesses are the market leaders in those geographical areas, operating a total of approximately 580 stores, a fully integrated omni-channel offer, and reaching more than 18 million consumers across its Reward programmes. Through its esports and events activities the Group is delivering unparalleled consumer gaming experiences directly, and on behalf of third parties, including its flagship event, Insomnia, the UK's largest gaming festival. Across its digital businesses the Group is pioneering the use of new technologies to reach gamers and business partners outside its main markets. This is effected through Ads Reality Limited, the Group's visual recognition and augmented reality business and Multiplay, its specialist game server hosting business. For more information please visit www.gamedigitalplc.com, www.multiplay.com or www.adsreality.com.