Last checked at 15 Mar 2010 08:14
FOR IMMEDIATE RELEASE
15 March 2010
MWB Group Holdings Plc ("MWB" or the "Group")
Sale of Freehold of Liberty Flagship Store for £41.5 million
MWB today announces that its 68% subsidiary, Liberty Plc ("Liberty" or "the Company"), has exchanged contracts for the sale of the freehold interest in Liberty's 125,000 sq ft flagship store on Great Marlborough Street, London W1, from which it operates its retail business for £41.5 million, to Sirosa Liberty Limited. The sale price reflects an initial yield of 4.8%.
On completion of the sale, Liberty will lease back the store and continue to operate from the building as one of London's most cutting edge, but accessible, design-led retailers. Under the terms of the transaction, Liberty will take an institutional 30-year lease on the building at an initial annual rent of £2.1 million, with five yearly fixed rent reviews during the intervening period.
The freehold of the flagship store was valued at £30.25 million at 31 December 2009, the date of Liberty's recent financial year end, based on an annual rental of £2.0 million and an eight year lease term. The sale price therefore represents a substantial surplus over that valuation, reflecting the increased demand for prime freehold property assets in Central London.
The sale proceeds will be used by Liberty to repay its bank debt and other liabilities, including short-term loans from MWB, and to provide additional financial resources for the Company.
The sale is conditional on approval by the shareholders of MWB, which will be sought by means of the issue of an explanatory circular and notice of General Meeting during April 2010. The Board of MWB, which owns 15.8% of the Group's issued share capital, has confirmed its approval of the sale, and shareholders associated with the Board owning a further 17.5% have also confirmed their approval of the sale.
Ends.
| MWB Group Holdings Plc Richard Balfour-Lynn, Chief Executive Jag Singh, Finance Director
| +44 (0) 20 7706 2121 |
| Panmure Gordon (Financial Adviser and Broker) Hugh Morgan Adam Pollock
| +44 (0) 20 7459 3600 |
| Baron Philips Associates (Financial PR Adviser) Baron Philips | +44 (0) 20 7920 3161 |