MCAP.L Regulatory News (MCAP)

14 Sep 2006 07:00

Mission Capital PLC14 September 2006 14 September 2006 MISSION CAPITAL TO ACQUIRE FIRST PROPERTY TRADING LIMITED Mission Capital plc (the "Company") is pleased to announce the exchange of aconditional agreement for the acquisition of First Property Trading Limited ("FPT"), a privately owned property trading company whose only asset is thefreehold of Roebuck House, Brunswick Road, Gloucester. The consideration payableis £518,000, comprising £400,000 in cash from the Company's existing resourcesand the balance by the issue of 1,685,714 New Ordinary Shares of 1p each at 7pper share ("New Ordinary Shares"). There will be an adjustment to theconsideration if the net assets at the date of completion, excluding theproperty held as stock and the debt, are not the agreed figure of £157,228 witha capped increase payable by the Company of £20,000. The acquisition is subjectto the admission by the London Stock Exchange of the New Ordinary Shares totrading on AIM, certain tax clearances and written consent from the mortgageesto the change of control and continuity of the facility agreements. The property, which is fully let, occupies a prominent corner position on thesouthern side of Gloucester city centre and comprises a small retail element onthe ground floor with three floors of offices providing a total net internalfloor area of approximately 10,560 sq.ft. The property produces a gross incomeof £96,250 per annum of which £60,000 per annum is from JLT Corporate Risks,part of The Jardine Lloyd Thompson Group plc. At the date of exchange, FPT hadoutstanding loans from the mortgagees of £833,697. This is Mission Capital's second acquisition since it floated on AIM in December2005. The Company was established with the primary objective of investing inproperty-backed businesses, property related businesses and property whereactive management could substantially increase value. In June 2006, MissionCapital acquired Karspace Management Limited ("KML"), a privately owned companyspecialising in the provision of car park and traffic management services toboth the public and private sector. Going forward, it is the Company's intentionto purchase further properties or property companies where the opportunityexists to extract value, as well as companies in the car parking sector. Application will be made for the admission to AIM of the New Ordinary Sharesonce the conditions of the acquisition have been satisfied. Upon admission, theNew Ordinary Shares will rank pari passu with the Company's existing OrdinaryShares. Neil Sinclair, Chairman of Mission Capital commented: "We are delighted with this acquisition. Not only is the property predominantlylet to a prime tenant, but significantly, it is very close to the 2.46 hectares(6.08 acres) site, also in Brunswick Road, where English Partnerships and theGloucester Heritage Urban Regeneration Company are inviting submissions for morethan 250,000 sq.ft of residential (circa 400 units), 14,650 of commercial/retailplus a community/health care provision. We will be looking into the possibility of securing planning consent for aresidential development and/or conversion on our site upon the expiry of theexisting leases or to grant renewals on appropriate terms and then tosubsequently sell the property." For further enquiries: Mission Capital plcNeil Sinclair (Chairman) Tel: 020 7917 2797Emma Sinclair (Managing Director) Tel: 020 7917 2799 Hudson Sandler Tel: 020 7796 4133Michael Sandler / Kate Hough Arbuthnot Securities Tel: 020 7012 2000Tom Griffiths This information is provided by RNS The company news service from the London Stock Exchange