Circle Property PLC Acquisition of Concorde Park, Maidenhead (5275I)

TIDMCRC

RNS Number : 5275I

Circle Property PLC

09 August 2019

9 August 2019

Circle Property Plc

("Circle" or the "Company")

Circle acquires Maidenhead office park for GBP14.6 million

Circle Property Plc (AIM: CRC), which invests in, develops and actively manages well-located regional office assets, is pleased to announce the acquisition of Concorde Park, Concorde Road, Maidenhead, a south east office park for GBP14.6 million.

The 71,500 sq ft park is currently 36.6% let to three tenants producing a combined rental income of GBP627,372 per annum. There is a vacant area of 45,328 sq ft with 21,346 sq ft under offer or in negotiation. The property benefits from being rebuilt in 2007 by LaSalle UK Ventures Property to a high specification including four new lifts, air conditioning and full height glazed atriums at a cost of around GBP7.4 million.

The acquisition of this well-located property, which is set to benefit from Crossrail, was primarily funded by a GBP12.791 million drawdown from the Company's recently agreed GBP100 million bank facility with RBS and HSBC. The acquisition price represents a net initial yield of 4.03% with a potential reversionary yield of 9.8% once fully let.

John Arnold, Chief Executive of Circle Property Plc, said:

"We are pleased to have completed this acquisition of Concorde Park for a consideration of GBP14.6 million. We believe we can add significant value to the property using our expertise in active asset management to drive rents. This acquisition is a further demonstration of Circle's successful strategy which has driven sector leading returns since its IPO in 2016."

ENDS

This announcement is inside information for the purposes of Article 7 of EU Regulation 596/2014.

 
                         [phone] 
 Circle Property Plc      8503 
 John Arnold, CEO 
  Edward Olins, COO 
 
 
                        [phone] 
 Cenkos Securities       8900 
 Azhic Basirov 
  Katy Birkin 
 
 
                        [phone] 
 Radnor Capital          1830 
 Joshua Cryer 
  Iain Daly 
 
 
                        [phone] 
 Camarco                 4980 
 Ginny Pulbrook 
  Tom Huddart 
 

About Circle Property Plc

Circle is the best performing quoted UK real estate company by NAV total return (NAV growth and dividend)(1) having delivered consistent returns with 86% NAV growth since IPO in 2016 in absolute terms.

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.

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.

As well as already delivering substantial increases in NAV, the Company's portfolio has significant reversionary potential with total estimated rental values post today's acquisition of GBP10.34m per annum, compared to contracted rent of GBP7.61m at 31 March 2019. Post today's acquisition, the Company has a portfolio of 16 regional commercial property investment and development assets in the UK valued at GBP139.2m.

(1) Source: Radnor Capital research, 31 March 2019

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August 09, 2019 02:00 ET (06:00 GMT)