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22 Aug 2008 17:02
CLOSE HIGH INCOME PROPERTIES PLC - DISPOSAL
Close High Income Properties PLC
The Board of Close High Income Properties plc ("the Company") is pleased to announce the sale of the following industrial properties within the Ordinary Share property portfolio to Spencer Business Parks Limited:
Henwood Business Park, Ashford
Units 4 - 8 Oakhill Trading Estate, Leicester
Units 1 - 17 Bellway Industrial Estate, Newcastle
Units 1 - 6 Walker Riverside, Newcastle
Units 1 - 5 Kirkleatham Business Park, Redcar
Stadium Court, Barbot Hall Industrial Estate, Rotherham
21 - 23 Greenfield Business Centre, Royston
Contracts for the sale of these properties have been exchanged today for a total cash consideration of £17.25 million. A deposit of £862,500 has been received with the balance payable on completion which is only conditional on receiving the appropriate landlord consents on the long leasehold interests at Leicester, Redcar and Rotherham. This is expected to occur within the next two months.
These properties were last valued by the Company's valuer, DTZ Debenham Tie Leung on 30 June 2008 at £19.43 million and their disposal will result in a loss of £2.39 million. However, the properties have all generated significant income since they were first acquired. The properties were originally purchased between November 2002 and July 2004 at a total cost of £17.24 million.
The proceeds from sale will be used partly to reduce the Company's outstanding debt as well as for general working capital purposes. After repaying debt the Company will have circa. £10.3 million of surplus cash. This liquidity will enable CHIP to continue to pay capital distributions up to the 2010 Annual General Meeting when, as previously announced, there will be a vote on the possible winding up of the Company.
The Company intends announcing its half year results to 30 June 2008 on Friday 29 August 2008.
For further information please contact:
Peter Roscrow
Close Investments Limited
Tel: 020 7426 4000
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