4 Feb 2015 07:51
Secure Income REIT Plc
(the 'Company')
ANNOUNCEMENT FOLLOWING PRESS SPECULATION REGARDING THE POSSIBLE SALE OF THE MADAME TUSSAUDS FREEHOLD INVESTMENT
4 February 2015: The Board of Secure Income REIT (AIM: SIR) has noted the media comment regarding the possible sale of the Madame Tussauds property investment and confirms that following unsolicited expressions of interest it has appointed CBRE to undertake a marketing campaign ahead of the potential sale of this iconic freehold property on Marylebone Road in Central London.
The property is let on a full repairing and insuring lease to Merlin Attractions Operations Ltd, the owner and operator of Madame Tussauds, guaranteed by Merlin Entertainments PLC, the world's second biggest visitor attraction business with a market capitalization of circa £4 billion. The lease runs for a minimum of a further 27 years with the option for the tenant to extend by up to a further 70 years upon expiry, bringing the potential tenancy length to almost 100 years from today. The current rent payable on the property is £15.5 million per annum and the lease provides for uncapped, upward only annual rent reviews throughout the term geared to RPI.
Madame Tussauds has occupied the current site for more than 130 years and has consistently been one of London's most successful tourist attractions. This is the first time ever that this property investment has been offered for sale individually in the open market.
There can be no certainty that any sale will occur or as to the nature or terms of any such transaction.
The Company's strategy remains firmly to invest in and hold for the long term high quality assets which generate very long term income from exceptional tenants
Enquiries:
Secure Income REIT Plc | +44 20 7647 7647 |
Nick Leslau / Mike Brown |
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Oriel Securities Limited (Nominated Adviser) | +44 20 7710 7720 |
David Arch |
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Tom Yeadon
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CBRE
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Franco Sidoli Lorna Walker
| 020 7182 2121 020 7182 2639 |
FTI Consulting | +44 20 3727 1000 |
Richard Sunderland |
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About Secure Income REIT
Secure Income REIT floated as a Real Estate Investment Trust on the AIM segment of the London Stock Exchange in June 2014. Upon Admission, the Company had a share price of 174p, representing a market capitalisation of £293 million, which has subsequently grown to 297.5p, valuing the Company at just under £500 million.
The Company specialises in generating long term, inflation protected, secure income from real estate investments. Its investment strategy is designed to satisfy investors' growing requirements for high quality, safe, inflation protected income flows.
At its interim results to 30 June 2014 the Company reported gross assets of £1.47 billion and, with a weighted average unexpired lease term of 27 years across its portfolio, all with fixed or RPI rental uplifts, has one of the longest income profiles in quoted property sector.
The Company's Board is chaired by Martin Moore and also comprises three further independent Directors in Leslie Ferrar, Jonathan Lane and Ian Marcus, as well as three members of the Prestbury Team in Nick Leslau, Mike Brown and Sandy Gumm.
The Company is externally managed by Prestbury Investments LLP which was external manager to MAX Property Group plc until August 2014, when was sold to Blackstone Group.
Prestbury and Sir Tom Hunter are majority shareholders in Secure Income REIT with 26% each.