UANC.L Regulatory News (UANC)

RNS Number : 7516T

Urban&Civic plc

17 October 2017

 

 

17 October 2017

 

Urban&Civic plc

 

Urban&Civic sells Stansted Hotel to reinvest in further residential Master Development

Urban&Civic plc announces that it has sold the recently completed Hampton by Hilton hotel at Stansted Airport to LGIM Real Assets (Legal & General) for a minimum consideration of £48.3 million. An additional sum of up to £1.1 million will be paid to Urban&Civic, depending upon operational performance over the next two years. The new hotel opened for trading in late July 2017 and is one of only two that are on-terminal at Stansted. Initial occupancy levels and achieved room rates are running above pre-opening forecasts.

 

The minimum consideration represents a projected yield on stabilised EBITDA three years forward of 6.75 per cent and is 15 per cent higher than the EPRA valuation of the completed asset in the interim balance sheet as at 31st March 2017. Profit realised on actual cost is expected to be in the order of £8.5 million. Cash returned back into the business, after accounting for development project bank debt, will exceed £30.0 million.

 

Proceeds of the sale will be directed into the Master Development of further strategic projects in which Urban&Civic is now the market leader. Shareholders can anticipate the early announcement of investment in new large-scale projects, consistent with the Company's strategy to accelerate quality housing delivery in areas of high demand and population growth.

 Commenting upon the sale Nigel Hugill, Chief Executive, said:

 "The sale of Stansted represents an obviously strong outcome for the Group but the core reason for establishing Urban&Civic was to provide new housing choices and accelerate supply through Master Development. That involves creating environments in which people actively want to live and a delivery structure that encourages speed and quality from those housebuilders looking to expand output. The model can be seen to be working and is directly consistent with current Government policy. We shall be going all out from here. "

 

-ENDS-

 

 

 

For further information, please contact:

 

Urban&Civic plc 020 7509 5555

Nigel Hugill /David Wood

 

FTI Consulting 020 3727 1000

Giles Barrie /Ellie Sweeney /Dido Laurimore

urban&civic@fticonsulting.com

 

Notes:

About Urban&Civic plc

Urban&Civic plc is an established UK property development and investment company listed on the London Stock Exchange's main market (UANC), with total assets valued at over £460 million (31 March 2017).

Headquartered in London and with a network of regional offices, Urban&Civic's team is led by Nigel Hugill, CEO, and Robin Butler, Managing Director. The Company has significant in-house expertise across site assembly, planning, project management, delivery, community engagement and sales.

Strategic land constitutes the core of Urban&Civic's business model where, as Master Developer, it owns or has the stewardship of over 4,500 acres across five sites located close to Cambridge, Huntingdon, Newark and Rugby. These sites will deliver more than 22,000 new homes, over six million sqft of business space, and at least eleven primary and three secondary schools over the next 15 to 20 years.

Proud to be defined by the quality of its projects, Urban&Civic is distinguished by its emphasis as Master Developer on the leveraged benefits that can be delivered from Strategic Sites. These include the creation of new jobs and enhanced skills as well as the delivery of real opportunities for local communities and stakeholders.

 

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