12 Nov 2007 07:01
Sigma Capital Group PLC12 November 2007 SGM.L 12 November 2007 SIGMA CAPITAL GROUP PLC ("Sigma") New Property Limited Partnership established to acquire City Wharf development in Aberdeen Sigma is pleased to announce that its property investment subsidiary, StrategicInvestment Management Ltd ("SI"), through its seventh limited partnership, isexchanging contracts today on the acquisition of the City Wharf development inAberdeen. Legal completion of the acquisition is currently expected by the endof 2007. The total consideration for this development property is circa £40m.This is being funded by bank debt together with £13.6m of third party investorequity. The transaction is expected to generate gross fees for Sigma ofapproximately £2.6m. Situated in the heart of Aberdeen city centre, the City Wharf development willcomprise a mix of prime office and leisure assets. Existing tenants includeAberdeen City Council and FirstGroup plc. The development features a circa25,000 sq ft casino, pre-let to Grosvenor Casinos, and a 107-bedroom Ibis hotel,pre-let to Accor Group. Rental guarantees of either two or three years are inplace for the remaining units. Practical completion of the development isanticipated to be in 2009. To date, SI has established six other limited partnerships, with the amount offunds previously raised totalling £264m. The investor equity element raised forthe first six partnerships totalled nearly £60m. SI has successfully disposed ofits Limited Partnership Numbers 1, 2 and 3, delivering investor returns onequity contributions of 21%, 40% and 30% respectively. Graham Barnet, CEO of Sigma, commented, "We are delighted to announce the acquisition of another high calibredevelopment for our seventh property partnership. Our previous propertypartnerships have been highly successful, with the disposal of the first threedelivering excellent returns for our investors. This seventh limited partnership represents another excellent fit for ourstringent investment criteria, offering a quality commercial development withguaranteed rental income and blue-chip tenants." Enquiries Company website: www.sigmacapital.co.uk Sigma Capital Group plc Graham Barnet, Chief Executive T: 0131 220 9444 Biddicks Katie Tzouliadis/ Sophie Lane T: 020 7448 1000 Arbuthnot Securities Tom Griffiths/ Neil Kirton T: 020 7012 2000 This information is provided by RNS The company news service from the London Stock Exchange