7 Dec 2015 07:00
7th December 2015
U+I realises further profit from the sale of projects in Watford and Braehead
U and I Group PLC (U+I) announces that it has realised profits of £2.7 million from further asset sales in Watford and Braehead.
In Watford, U+I has exchanged contracts with Henley Homes for the sale of Rembrandt House, a 40,000 sq. ft. office building with planning consent for a 43-unit residential redevelopment realising profits of £0.7 million. The sale marks the final phase of delivery at this 3.4-acre London City Region site which was originally acquired in January 2011. Planning consent was secured for a residential redevelopment of the whole site in two phases and the first phase was sold to a housebuilder for £5.6 million in April 2014.
In Braehead near Glasgow, U+I has completed the sale to Whitbread of a 103-key hotel for £6.8 million realising profits of £2.0 million, an IRR of 18% pa over the whole project. Acquired from a Receiver in 2010 as a vacant hotel building, U+I upgraded the space and secured a management contract with Louvre Hotels Group who operated the hotel under its Campanile brand. Since ownership, the hotel operation has reached a stable EBITDA of £0.5 million reflecting average occupancy rates of 81%.
Matthew Weiner, Chief Executive Officer, U+I said: "Today's announcement adds to our progress towards realising our anticipated gains for the full year. We maintain absolutely focussed on delivering value from across our portfolio as we capture gains from our regeneration activities and dispose of mature assets, with the aim of recycling capital out of smaller projects into fewer, larger regeneration opportunities."
For further information:
Lucy Grimble, U+I
020 7828 4777
Martha Walsh, Tulchan Communications
020 7353 4200