KCR Residential REIT PLC Acquisition of Karlind Management Services Ltd (1567T)

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RNS Number : 1567T

KCR Residential REIT PLC

02 July 2018

2 July 2018

KCR Residential REIT Plc

("KCR" or "the Company")

Completed acquisition of Karlind Management Services Limited ("Karlind")

Further to the announcement on 3 April 2018, KCR Residential REIT ("KCR") is pleased to announce that it has completed the acquisition of the entire issued share capital of Karlind, a company that owns 16 studio, one-and-two bedroom apartments in Ladbroke Grove, Kensington and one leasehold two-bedroom apartment in Harrow, for a total consideration of GBP5.35 million. KCR will satisfy the consideration through its banking facilities and cash reserves.

KCR intends to deploy its proven active management skills to increase property values and rental yield through internal refurbishment and by obtaining planning consent for roof and rear extensions to the Kensington properties.

The apartments, which are fully let, are situated in desirable locations for tenants given the close proximity to transport links and local retail and leisure amenities. The portfolio has a total rental income of over GBP0.25 million, and delivers a gross annual yield on consideration of 4.8 per cent. The average unit value of the acquired properties is GBP314,700 and the average monthly rent is approximately GBP1,250 (GBP32 per sq. ft. per annum).

Dominic White, the chief executive of KCR, commented:

"This important acquisition fits perfectly within KCR's acquisition and growth strategy and will significantly increase the Company's net asset value per share. We are confident that we can further grow property value and rental yields through active management and our planned refurbishments."

Contacts:

 
 KCR Residential REIT plc           [e-mail] 
  Dominic White, Chief executive     [phone] 
  www.kcrreit.com 
 Arden Partners plc 
  Steve Douglas 
  Benjamin Cryer                     [phone] 
 Yellow Jersey PR 
  Charles Goodwin                    [phone] 
  Abena Affum                        [phone] 
 

Notes to Editors:

KCR'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 residential areas in the UK.

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July 02, 2018 02:00 ET (06:00 GMT)