TIDMCIC
RNS Number : 1975U
Conygar Investment Company PLC(The)
19 December 2011
19 December 2011
THE CONYGAR INVESTMENT COMPANY PLC
ACQUISITION OF PROPERTIES
The Conygar Investment Company PLC ("Conygar") is pleased to
announce that it has simultaneously exchanged and completed on the
acquisition of nine freehold and long leasehold properties from a
consortium including Edinmore Group and Buccleuch Property, for a
total cash consideration of GBP39.9 million.
The annual rent roll is approximately GBP4.22 million
representing a net initial yield of 10.56%. The weighted average
lease length is 4.26 years with 89% occupancy. The consideration
will be satisfied out of Conygar's existing cash resources. The
directors expect that the portfolio will be refinanced in due
course in order to release additional funds for further business
opportunities.
The portfolio consists of:
Ashby Park, Ashby de la Zouch
Three office freehold buildings totalling 95,000 square feet let
to three tenants, Alstom Power, Findel Education and Hill Rom
Limited, on leases with a weighted unexpired term of 4.96 years and
total rental income of GBP1,059,000 pa. There is also a well
located 3 acre development site which offers further
opportunities.
Norfolk House, Birmingham
This 115,000 square foot freehold building consists of 89,000
square feet of office space with the balance being retail space and
is located next to the Bull Ring in Birmingham City centre. It
should benefit from the nearby redevelopment of New Street Station.
The current rental income is GBP949,533 pa.
Watt Place, Hamilton International Technology Park, Blantyre
A 34,300 square foot freehold industrial unit let to motor
vehicle component manufacturer CTS Corporation UK Limited on a
lease expiring in February 2016. The company also occupies other
premises nearby so there is an opportunity to re-gear the lease at
the appropriate time. The current rental income is GBP189,000
pa.
Compass House, Dundee
A 30,500 square foot heritable office building in Dundee's prime
waterfront location that is let to The Scottish Ministers until
March 2019. Total rental income is GBP380,000 pa.
Witham Park House, Lincoln
This is a former factory divided into three separate freehold
blocks and converted into 101,000 square feet of offices. The
majority of the building is let to Lincolnshire County Council with
lease expiry dates ranging from 2012 to 2018. The building is fully
occupied and a number of key services are located here so we are
optimistic that the Council will look to remain. Current rental
income is GBP585,000 pa.
Charles House, Northampton
A 28,600 square foot freehold building built over 5 floors all
let on a number of short leases. The property is well maintained
and vacant space has let well to date. Current rental income is
GBP194,000 pa.
Tollgate Business Park, Stafford
A 55,000 square foot freehold industrial/office building let to
Elster Metering until April 2015 at GBP291,000 pa.
1 Cotham Street, St Helens
This 41,600 square foot freehold building is let to Wilkinsons
at GBP466,000 pa and is purpose built for them. It offers a lease
re-gearing opportunity upon expiry of the lease in October
2015.
Network House, Wolverhampton
This 33,300 square foot freehold building consists of 14,000
square feet of offices and 19,300 square feet of retail space. The
existing office accommodation is currently vacant, however the
property offers a considerable redevelopment opportunity and we are
evaluating the various alternatives. Current rental income is
GBP113,000 pa.
Robert Ware, Chief Executive of Conygar, commented:
"This is an excellent off-market opportunity for Conygar, which
is consistent with our strategy of acquiring assets and development
opportunities where we can add further value. It is a high yielding
portfolio with a good spread of risk and offering considerable
upside from both lease re-gears and development opportunities. The
assets are a good fit with our existing portfolio and will generate
surplus cash from day one."
Enquiries:
The Conygar Investment Company PLC
Robert Ware: 020 7258 8670
Steven Vaughan: 020 7258 8670
Oriel Securities Limited (Nominated Adviser and Broker)
Michael Shaw: 020 7710 7600
Neil Langford: 020 7710 7600
Temple Bar Advisory (Public Relations)
Alex Child-Villiers: 07795 425580
Alina Ulkina: 020 7002 1080
This information is provided by RNS
The company news service from the London Stock Exchange
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