K&C REIT PLC Disposal of 49 Cheap Street, Newbury (5800Z)

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RNS Number : 5800Z

K&C REIT PLC

27 May 2016

27 May 2016

K&C REIT plc

("K&C" or the "Company")

Disposal of 49 Cheap Street, Newbury, Berkshire

K&C REIT plc, the residential real estate investment trust ("REIT") group, is pleased to announce that its subsidiary, Kensington & Chelsea REIT Limited ("K&C Ltd"), exchanged contracts yesterday evening for the sale of 49 Cheap Street, the last of the group's three 'non-core' properties, for a gross cash consideration of GBP210,000. The sale is expected to complete by 24 June 2016.

49 Cheap Street is a retail premises with a first-floor flat above that was acquired in March 2014 for GBP215,000. The property is being sold with vacant possession and is therefore not currently generating any rental income.

K&C Ltd acquired three properties in Berkshire, including 49 Cheap Street, to make up the initial portfolio prior to admission of the Company's ordinary shares to trading on AIM on 3 July 2015. As stated in the Company's Admission Document, these properties were not intended to form a material part of the Company's ongoing property portfolio and the directors are pleased to confirm that the disposal of 49 Cheap Street completes the planned disposal of these original properties. The three 'non-core' properties were in total sold for approximately GBP55,000 more than the aggregate purchase price, generating a profit of approximately GBP43,000.

The net proceeds of the disposal of 49 Cheap Street will be available for general corporate purposes.

Contacts:

 
 K&C REIT                          [e-mail] 
  Tim James, Managing Director      [phone] 
                                    029 
                                    www.kandc-reit.co.uk 
 Stockdale Securities 
  Robert Finlay/Rose Ramsden       [phone] 
 Yellow Jersey PR 
  Philip Ranger/Harriet Jackson    [phone] 
 

Notes to Editors:

K&C's objective is to build a substantial residential property portfolio that generates secure income flow for shareholders through the acquisition of SPVs (Special Purpose Vehicles) with inherent historical capital gains. The Directors intend that the group will acquire, develop and manage residential property assets in Central London and other key residential areas in the UK.

This information is provided by RNS

The company news service from the London Stock Exchange

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May 27, 2016 10:00 ET (14:00 GMT)