Panther Securities Regulatory News (PNS)

13 August 2014 Panther Securities PLC ("Panther", the "Company" or the "Group") Lease exchanged on Merton freehold property Further to the announcement dated 5 August 2014, Panther announces that it hasexchanged agreements to lease on its freehold in Merton, which was previouslyoccupied by Wimbledon Studios Ltd (currently in administration). Wimbledon Studios Ltd, in which Panther has a 25 per cent. interest, wascontracted to pay a concessionary rental of £490,000 per annum. The cost ofchanging from a fixed set filming location to a more modern multi-lettelevision and film studio proved far more costly than anticipated and tooklonger to achieve viability than originally planned. Panther could no longercontinue to support the business, as it felt the business would not reachprofitability in the medium term and it was requiring significant funds, whichthe Panther Board could not justify for a business that was non-core. When thefunding from Panther slowed, the directors of Wimbledon Studios Ltd took adviceand then decided to appoint administrators. Panther has continued to supportthe Wimbledon Studios situation providing the administrators with additionalfunds, which has given them more flexibility on the close down, allowing for aslower more controlled process, which should be less harmful and assist thesmall and medium size businesses in the media village to find alternativeoffices. The agreement to lease is a UK television broadcaster who Panther believes isexpanding rapidly and has outgrown its current premises. The property is to be let at a rental of £1,050,000 per annum under a 15 yearlease, with tenant break options every 5 years. As part of the leasingagreement, the Group is contracted to replace the majority of the roof for £500,000 and is also contributing towards the upgrading of the electricitysupply capacity, an amount up to £100,000. The tenant is paying two and halfyears rent in advance, which was a requirement due to the relative short termcertain (i.e. 5 years to the break) and the substantial expenditure required tobe undertaken to achieve the letting. Completion of the lease is conditional on the completion of these works andother less costly conditions, which the Panther Board believes are manageablein the timeframe allotted to them. The Group envisages completion in earlyOctober 2014. Immediately on completion of the roof works the tenant intends to implementinternal building improvements to upgrade the facilities at the property. Itis also planning to bring 150 jobs from its existing premises. This continuesthe presence within the building of a film and television related operation,which the building has been utilised for over the last 20 years, includinghousing originally The Bill television police drama series. Since the Merton property was purchased by Panther in 2010 there has beenstrong growth in demand for London industrial property which has resulted invalue increases. Panther previously announced that it had a number of different enquiries forthe building and this letting was considered the most beneficial to the Group,as it can retain the investment which the Panther Board believes has strongpotential growth. Other than an offer from a developer, the other offers wereall conditional and did not look like they could be satisfied in the requiredtime scale. This letting enables Panther to retain an attractive industrialinvestment in a desirable London location, with a growing media tenant, wherethe Panther Board believes there is an opportunity for further increase invalue. The Panther Board is delighted with this letting which will improve the Group'sheadline annual rental income by £560,000, but will also increase annualprofitability by approximately £1,000,000, as previously the concessionaryrental income had been fully provided against. The rent from this tenant willbe approximately 8 per cent. of the Group's total rental income once the leaseis completed. Enquiries: Panther Securities PLC Andrew Perloff - Chairman Tel: 01707 667 300Simon Peters - Finance Director Sanlam Securities UK Limited (Nominated Adviser and Broker)David Worlidge/Simon Clements Tel: 020 7628 2200