IMPT.L Regulatory News (IMPT)

30 Dec 2005 10:33

Close High Income Properties PLC30 December 2005 Close High Income Properties PLC 30 December 2005 The Board of Close High Income Properties PLC, ("the Company") is pleased toannounce that contracts have been exchanged for the purchase of a portfolio ofnine office buildings from Gladman Commercial Properties for a cashconsideration of £39,125,000. The purchase is due to complete on 28 February2006. The properties purchased are as follows: Appleton Court, Wakefield (Long Leasehold)Basset Court, Northampton (Freehold)Dalton Court, Blackburn (Freehold)Faraday Court, Burton-upon-Trent (Freehold)Newton Court, Wolverhampton (Long Leasehold)Quays Reach, Salford (Freehold)Rutherford Court, Stafford (Long Leasehold)Stephenson Court, Bedford (Long Leasehold)Whitworth Court, Runcorn (Freehold) All the properties are multi-tenanted courtyard style office buildings and havebeen constructed within the last five years. The total floor area of theproperties is approximately 236,000 sq ft (21,900 sq m). The total initial gross rent receivable from the portfolio is £3,148,700 out ofwhich the Company will pay £120,000 per annum for the first two years to thevendor as a service charge contribution. The vendor is responsible for theremainder of the service charge for the first two years following completion.The net annual rental income is estimated at £3,028,700. The properties arecurrently let to 125 tenants with an average annual rent per tenant of £15,800.The average length of occupational lease remaining is two years, three months. The vendor is providing a rental guarantee in respect of the vacant units withinthe portfolio for a period of up to two years from completion. This guaranteewill fall away once each vacant unit is let. The Directors believe this is an attractive proposition for the Company. Theyintend it to form the first acquisition earmarked for the new 'D' Share Issuewhich is expected to be launched early in the New Year having receivedshareholder consent on 16 December 2005. Close Brothers Investment Limited, theproperty investment adviser, believes the portfolio has the potential for highannual rental income and prospects for capital growth over the medium term. Peter Roscrow, Deputy Managing Director of Close Brothers Investment Limited(the Company's Property Investment Adviser) said: "This acquisition broadens the group's property portfolio which has previouslybeen more focused towards industrial property. It also offers a number of activemanagement opportunities and should be an excellent cornerstone investment forthe 'D' Share property portfolio". The sale is due to complete on 28 February 2006. For further information contact: Peter RoscrowClose Brothers Investment LimitedTel No: 0207 426 4000 This information is provided by RNS The company news service from the London Stock Exchange