Circle Property PLC Repayment of Debt Facility (8583P)

TIDMCRC

RNS Number : 8583P

Circle Property PLC

22 June 2022

22 June 2022

Circle Property Plc

("Circle", the "Company" or the "Group")

Repayment of Debt Facility

Circle Property Plc (AIM: CRC), which invests in, develops and actively manages well-located regional office assets, is pleased to announce the following update in relation to its reduction in gearing and debt facility.

The Company has a financing facility in place with RBS and HSBC for GBP100 million. The senior revolving facility is for GBP60 million with an "accordion" option for a further GBP40 million (of which the Company had drawn GBP62.3 million) (the "Facility").

Following the disposal of Kents Hill Park Conference Centre which completed in March 2022 , the Board resolved to utilise 50 per cent. of the proceeds to reduce debt, leaving an outstanding amount under the Company's facility of approximately GBP21.4 million equating to an LTV of 29.4 per cent. Moreover, on 26 May 2022, the Company disposed of 720 Aztec West in Bristol for a consideration of GBP2.52 million, the net proceeds of which were utilised to further reduce the Facility to GBP19.16 million.

The Company now announces that as at 22 June 2022, it has repaid the amount outstanding under the Facility of GBP19.16 million in full and has subsequently cancelled the Facility, leaving the Group with a cash balance of approximately GBP5.06 million as at 22 June 2022 and no debt.

The Company continues to make targeted asset sales in an orderly manner over a period of two to three years (if not sooner) in line with its recently updated strategy. Notwithstanding this disposals' programme, the team continues to actively manage the portfolio to achieve lettings at estimated rental values and will complete scheduled developments including at K3 Kents Hill, Milton Keynes (scheduled for completion in Autumn 2022) as well as other refurbishments and fit-outs as appropriate.

The Board remains committed to maximising returns and delivering value to Shareholders, and as such, the Board will evaluate and determine returns of capital to Shareholders using a combination of existing cash resources and the proceeds of any future asset sales. The Board expects that a minimum of two returns of capital will be made to Shareholders, the first of which is expected to occur by March 2023.

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.

 
                           [phone] 
 Circle Property Plc        8503 
 John Arnold, CEO 
  Edward Olins, COO 
 
                          [phone] 
 Cenkos Securities plc     8900 
 Katy Birkin 
  Mark Connelly 
 
  Radnor Capital 
  Joshua Cryer              [phone] 
  Iain Daly                 1830 
                          [phone] 
 Camarco                   4992 
 Ginny Pulbrook 
  Toby Strong 
 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [e-mail] or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.

END

MSCELLFLLQLZBBL

(END) Dow Jones Newswires

June 22, 2022 11:43 ET (15:43 GMT)