Last checked at 6 Nov 2008 07:00
6 November 2008
Town Centre Securities PLC
Disposal
Town Centre Securities PLC ("TCS") , the Leeds based property investment and development company, announces that it has sold its 50 per cent interest in QT Partnership Limited ("QT") to Q-Park Limited ("Q-Park") which already owns the other 50 per cent. QT was formed as a joint venture between TCS and Q-Park in 2006 and its sole business is the ownership of the 678 space multi-storey car park at Sheffield Railway Station.
QT Partnership has been a successful investment for TCS and Q-Park. However, the Board of TCS believes that the sale represents a good opportunity for TCS to realise funds and add to its cash resources mindful of future opportunities which should present themselves as the property development and investment markets begin to stabilise. The cash proceeds will be applied initially to reduce group indebtedness.
Total consideration for the disposal was £8.7 million in cash, paid at completion, comprising £3.2 million in respect of TCS's shareholding plus the repayment of intra-group debt of £5.5 million.
The value of gross assets of QT at 30 June 2008 was £15.8 million. In the year ended 30 June 2008, QT made profit before tax and interest on shareholder loans of £0.8 million. TCS's profit on disposal is approximately £1.4 million.
The car park has been operated by Q-Park under a management contract with QT, and therefore the disposal has no management impact on TCS nor on the operation and ownership of its remaining car park activities in Leeds and Manchester.
Edward Ziff Chairman and Chief Executive of TCS said:
"The proceeds of this disposal, together with our robust financing arrangements, strengthen our ability to move forward with our development projects and provide firepower to acquire new assets for investment and development when the time is right."
Enquiries:
Town Centre Securities PLC www.tcs-plc.com
Edward Ziff, Chairman and Chief Executive 0113 222 1234
Smithfield 0207 360 4900
Reg Hoare/Miranda Good/Rebecca Whitehead