Last checked at 5 Jul 2017 09:32
5 July 2017
Motorpoint Group plc
("Motorpoint" or the "Group")
Smaller Related Party Transactions
Motorpoint Group plc, the UK's largest independent vehicle retailer announces that the Group has agreed to vary the terms of its leases from Shoby Properties Limited (a related party of David Shelton who is a major shareholder of Motorpoint) in respect of its Derby, Birmingham and Burnley sites.
The Birmingham site is currently held on a lease to 2028, with upward only rent reviews to market rental value. Agreement has been reached to extend this lease to 2033, with an option to renew the lease for an additional 10 years, with rent reviews linked to RPI with a cap and collar arrangement limiting this to between 1% and 3% p.a.
The Burnley site is currently held on two leases to 2031, with upward only rent reviews to market rental value. Agreement has been reached to extend this lease to 2037, with an option to renew the lease for an additional 10 years, with rent reviews linked to RPI with a cap and collar arrangement limiting this to between 1% and 3% p.a. In addition, Shoby Investments has removed a reinstatement provision regarding a former building on the site that was demolished during Motorpoint's development of the site. This removes a potential future financial liability for Motorpoint.
Agreement has also been reached to vary the lease for the Derby compound providing Motorpoint with a right of pre-emption. The right is to purchase the property in the event the landlord wishes to make a disposal of it on or before 14 September 2028.
No consideration was paid to David Shelton or Shoby Properties Limited for entering into the variations in these leases as described above.
The variations have been approved by a committee of Independent Directors in accordance with the Relationship Agreement between, inter alia, (1) Motorpoint and (2) David Shelton dated 13 May 2016, having been considered to be promoting the interests of the Group.
These transactions fall within Listing Rule 11.1.10R and this announcement is made in accordance with Listing Rule 11.1.10R(c).
Enquiries:
Motorpoint Group plc Mark Carpenter, Chief Executive Officer James Gilmour, Chief Financial Officer
| Via FTI Consulting |
FTI Consulting (Financial PR) Jonathon Brill Alex Beagley James Styles | 020 3727 1000 |
Notes to editors
Motorpoint is the largest independent vehicle retailer in the United Kingdom. The Group's principal business is the sale of nearly-new vehicles, the majority of which are up to two years old and which have covered less than 15,000 miles. Motorpoint sells vehicles from brands representing over 95 per cent. of new vehicle sales in the United Kingdom, with models from Ford, Vauxhall, Volkswagen, Nissan, Hyundai, Audi and BMW being amongst the top sellers. The Group operates from 12 retail sites across the United Kingdom; Derby, Burnley, Glasgow, Newport, Peterborough, Chingford, Birmingham, Widnes, Birtley, Castleford, Oldbury and Sheffield, of which seven have opened in the last five years; together with a national contact-centre dealing with online enquiries.
More information is available at www.motorpointplc.com and www.motorpoint.co.uk