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6 Nov 2008 07:00
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6Β November 2008
Town Centre SecuritiesΒ PLC
Disposal
Town Centre SecuritiesΒ PLCΒ ("TCS")Β , the Leeds based property investment and development company,Β announces that itΒ hasΒ sold its 50 per cent interest in QT Partnership LimitedΒ ("QT")Β 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-ParkΒ in 2006Β 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 toΒ realise funds andΒ add to itsΒ cashΒ 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 disposalΒ was Β£8.7Β million in cash, paid at completion, comprising Β£3.2Β million in respect ofΒ TCS'sΒ shareholdingΒ plus the repayment of intra-group debt of Β£5.5Β million.
The value of gross assets of QT atΒ 30 June 2008Β wasΒ Β£15.8Β million. In the year ended 30 June 2008, QT made profit before tax and interest on shareholder loans of Β£0.8Β million. TCS'sΒ profit on disposalΒ isΒ approximately Β£1.4Β million.
The car park has been operated by Q-Park under a management contract with QT,Β andΒ therefore the disposalΒ has noΒ managementΒ impact onΒ TCS norΒ onΒ the operation and ownership of its remaining car park activitiesΒ inΒ LeedsΒ andΒ 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 SecuritiesΒ PLC www.tcs-plc.com
Edward Ziff, Chairman and Chief Executive 0113 222 1234
Smithfield 0207 360 4900
Reg Hoare/Miranda Good/Rebecca Whitehead
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