Conditional Sale - Saunderton

18 Jul 2007 07:00

Molins PLC18 July 2007 18 July 2007 FOR IMMEDIATE RELEASE MOLINS PLC Conditional Sale of Saunderton Site On 17 July 2007 Molins PLC signed a conditional contract to sell its 26 acres ofdeveloped land and buildings together with 25 acres of agricultural land atSaunderton, Bucks ("the Site"). The contract provides that on satisfaction of anumber of conditions, e-shelter facility services GmbH ("the Buyer"), willacquire the freehold interest in the Site for a consideration of £18.85m, or£18.35m if completion of the transaction is before 30 November 2007. Oncompletion, Molins will lease approximately 5,000 square metres of buildingspace on a rent-free basis for up to three years to continue its currentactivities. The contract provides that the Buyer has a period of exclusivity during which itwill seek to satisfy various practical conditions relating to the Site. Oncethese conditions have been satisfied, the consent of shareholders in generalmeeting will be sought, which is required in view of the size of the transactionrelative to Molins. The receipt by the Buyer of satisfactory planningpermission for its development scheme is also a condition to the contract. The Buyer has paid Molins £100,000 as a non-returnable deposit. Furtherdeposits may subsequently become due depending on the time taken to satisfy thepractical conditions above. The Buyer may serve one month's notice to terminatethe conditional contract at any time up to the point that all of the Buyer'sconditions, except receipt of planning permission, have been satisfied. At 31 December 2006 the book value of the assets subject to the transaction was£13.3m before deferred tax. Rental income from the Site of £0.2m was receivedby Molins in the year to 31 December 2006. The net proceeds from the sale ofthe Site, which are estimated to be approximately £16m after tax and expenses,will be used to repay debt and to fund the working capital requirements of theGroup. e-shelter facility services GmbH is a German based company, owned by InvestaImmobiliengruppe, a privately owned project development firm that has managedinvestments in excess of €3 billion since its inception. e-shelter is thelargest provider of data centre services in Germany and the intended purchase ofthe Site is part of the execution of its strategy to enter the UK market. Itsmain facility is in Frankfurt, which provides 60,000 square metres of space, andit also has sites in Berlin, Hamburg and Munich. Trading Update The trading outlook for the full year continues broadly to match theexpectations of the Board, although the slow start to the year in ScientificServices continues. Enquiries: Molins PLC Tel: 01908 219000 Peter Byrom, Chairman David Cowen, Group Finance Director Issued by: Citigate Dewe Rogerson Tel: 020 7638 9571 Margaret George This information is provided by RNS The company news service from the London Stock Exchange