Last checked at 28 Aug 2018 11:45
28 August 2018
WYNNSTAY PROPERTIES PLC
("the Company")
Possible Disposal
Further to the AGM Trading Update released on 10 July 2018, the Company provides an update in relation to its Basingstoke property (the "Property").
The Company has entered into an agreement with Bolling Investments Limited (the "Tenant"), a subsidiary of Lookers plc, to lease Units 1 and 2 at the Property for a period of 9 months commencing 1 July 2018 (the "Term") paying a rent of £52,920 per annum from 20th August 2018 (the "Lease"). Under the Lease, the Tenant will have the option, but not the obligation, during the Term to acquire all three units at the Property for a cash consideration of £1.85 million. During the Term the Tenant is expected to seek planning permission (at the Tenant's cost) in order to redevelop the Property. The Lease is terminable at any time after the 20th November 2018 on a minimum of one month's notice by the Tenant, and by the Company if the Tenant does not apply for full planning permission. There is no certainty that any planning permission will be obtained or that, if it is obtained, the Tenant will exercise the option to purchase the Property.
For the year ended 25th March 2018, the Property generated net rental income of £ 138,250 and, as at 25th March 2018, the gross book value of the Property (before repair and refurbishment costs) was £1.78 million. If the Tenant exercises the option to acquire the Property, the cash proceeds will be held as working capital pending reinvestment.
Commenting on this transaction Philip Collins, Chairman of Wynnstay, said:
"This arrangement provides Wynnstay with continued rental income from all three units at Basingstoke and avoids the costs arising from the two unoccupied units while the Tenant goes through the planning process that it requires. Whilst at this stage, there is no certainty as to the outcome, if the Tenant acquires the Property, the arrangement will provide a satisfactory outcome for Wynnstay. If the Tenant does not acquire the Property, we will pursue other options."
For further information please contact:
Wynnstay Properties Plc
Toby Parker, Finance Director
020 7554 8766
Panmure Gordon (UK) Limited
Andrew Potts
020 7886 2500
This announcement contains inside information for the purpose of Article 7 of the Market Abuse Regulation (EU) No. 596/2014