1 Sep 2021 16:52
The following amendment has been made to the announcement released on 1 September 2021 at 7.00am under RNS No 3051K.
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The reference to Boultbee LDN Capital Ltd as buyer was incorrect and has been corrected in the text below to Boultbee Brooks (Castle Park) Limited c/o Boultbee Brooks Real Estate.
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All other details remain unchanged.
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1 September 2021
Circle Property Plc
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("Circle" or the "Company")
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Disposal of One Castle Park, Bristol for £20 million
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Circle Property Plc (AIM: CRC), which invests in, develops and actively manages well-located regional office assets, is pleased to announce that it has exchanged contracts to sell One Castle Park, Bristol to Boultbee Brooks (Castle Park) Limited c/o Boultbee Brooks Real Estate.
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The sale price of £20 million represents a 3.9% increase on the 31 March 2021 valuation of £19.25 million, with completion expected to take place on 16 December 2021. The investment property was acquired by the Company in November 2012 for £4.165 million.
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One Castle Park, Bristol, comprises a refurbished multi-let city centre office building providing 79,359 sq ft of accommodation with a weighted unexpired lease term of 3.3 years to expiry and total rent passing of £999,543 per annum (£16.42 psf overall). The profit before tax for the year ending 31 March 2021 attributable to One Castle Park was £0.65 million.
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The cash proceeds from the sale (subject to completion) will be utilised, in line with previous announcements, to reduce the Company's gearing from the current level. The Company has a number of assets that have benefited from an active management approach where considerable value has been added following redevelopment, lease restructures or renewals.
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Further announcements, will be made, as appropriate.
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The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the UK version of the EU Market Abuse Regulation (2014/596) which is part of UK law by virtue of the European Union (Withdrawal) Act 2018, as amended and supplemented from time to time.
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Circle Property Plc | Â +44 (0)20 7930 8503 |
John Arnold, CEO Edward Olins, COO | Â |
 |  |
Cenkos Securities plc | +44 (0)20 7397 8900 |
Katy Birkin Mark Connelly  Radnor Capital Joshua Cryer Iain Daly  |    +44 (0)20 3897 1830 |
Camarco | +44 (0)20 3757 4992 |
Ginny Pulbrook Toby Strong | Â |
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About Circle Property Plc
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Circle is amongst the best performing quoted UK real estate companies having delivered 84% NAV growth and a 105% total return (NAV growth and dividends) since IPO in 2016.
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Circle focusses on acquiring assets in regional cities, many of which have significant office supply constraints, and on office assets with active management potential (refurbishment opportunities, under-rented or vacant properties or short leases), rather than just maximising initial rental yields.
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Circle is not a Real Estate Investment Trust (REIT) and can actively recycle proceeds from asset sales into its refurbishment and redevelopment pipeline, as well as future investment opportunities, therefore targeting a broader range of returns for shareholders, which are primarily driven by NAV growth.
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As well as already delivering substantial increases in NAV, the Company's portfolio has significant reversionary potential with current total estimated rental values of £10.92 million per annum, compared to contracted rent of £8.70 million at 31 March 2020. The Company has a portfolio of 13 regional commercial property investment and development assets in the UK valued at £132.15 million as at 31 March 2021.
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* valuation figures stated after deducting the value of Power House, Davy Avenue, Milton Keynes (being £3.3 million as at 31 March 2020 and £3.25 million as at 30 September 2020) which was sold by the Company for £3.55 million in March 2021.
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