Mpac Group Plc Regulatory News (MPAC)

30 Aug 2007 12:17

Molins PLC30 August 2007 30 August 2007 FOR IMMEDIATE RELEASE MOLINS PLC Sale of Nottingham Site Molins PLC today sold its freehold interest in a property in Nottingham (theProperty) for a consideration of £3.7m, which was paid in cash. After tax andexpenses, including a provision for rental guarantees, the net proceeds toMolins are expected to be approximately £3.1m. Of the net proceeds,approximately £0.5m will be used to provide additional funding to the Company'sUK pension scheme and the balance to repay debt. At 31 December 2006 the bookvalue of the Property was £1.8m before deferred tax, £1.7m after deferred tax. The purchaser of the Property is Kenmore Capital Portfolio Limited (the Buyer),a subsidiary of Kenmore Property Group Limited, a trading and developmentproperty investment company and fund management group, based in the UK. The Property, which comprises some 6,500 square metres of office and industrialspace, was retained by Molins following the sale of its Sandiacre Rose Forgrovebusiness in December 2006. The Property is leased by Hayssen Europe Limited(the tenant) for a rent of £0.3m per annum, which is separately subject to arebate from Molins to the tenant of £0.1m per annum. The lease expires inDecember 2009 or on an earlier date, subject to the tenant giving six monthsnotice. Molins has guaranteed rental income to the Buyer of £0.3m per annumuntil December 2009. As at 30 August 2007 the tenant had not given notice toterminate the lease. Net rental income received by Molins in relation to theProperty in the financial year to 31 December 2006, which covered the period 19December to 31 December, was £7,000. Molins will be publishing its interim results for the six months period to 30June 2007 on 31 August 2007. Enquiries: Molins PLC Tel: 01908 219000 Peter Byrom, Chairman David Cowen, Group Finance Director Issued by: Citigate Dewe Rogerson Tel: 020 7638 9571 Margaret George This information is provided by RNS The company news service from the London Stock Exchange