KCR Residential REIT PLC KCR and Inland Homes property transaction (1664S)

TIDMKCR

RNS Number : 1664S

KCR Residential REIT PLC

21 June 2018

21 June 2018

KCR Residential REIT Plc

("KCR" or "the Company")

Property acquisitions (including first transaction under the Inland Homes strategic relationship)

Further to KCR's announcement of its strategic relationship (the "Agreement") with Inland Homes ("Inland") on 31 May 2018, KCR is pleased to announce the first transaction to take place under the terms of the Agreement. KCR has entered into an option agreement to acquire two properties from Inland for a total consideration of GBP2.56 million payable in KCR shares and/or cash. The acquisition is targeted to proceed on or before 30 June 2018. KCR would be acquiring the entire share capital of the SPV that owns the freehold and long leasehold of the properties. The properties are fully let on effective full repairing and insuring leases and generate an annual income of GBP133,750, a net yield on consideration of 5.2%.

KCR is also pleased to confirm that, further to the announcement on 3 April 2018, it will be completing the acquisition of 17 apartments in West London for a total consideration of GBP5.35 million payable in cash on 29 June 2018. This transaction will significantly increase the Company's net asset value per share.

Dominic White, the chief executive of KCR, commented:

"This transaction is a significant step forward for the Company and underlines the commitment of both parties to implement the Agreement that was announced three weeks ago. KCR and Inland are currently at an advanced stage in negotiations for KCR to acquire two further properties in the Inland portfolio and we will update the market on these when appropriate."

Contacts:

 
 KCR Residential REIT plc           [e-mail] 
  Dominic White, Chief executive     [phone] 
  www.kcrreit.com                    5236 
 Arden Partners plc 
  Steve Douglas                      [phone] 
  Benjamin Cryer                     5917 
 
                                     [phone] 
 Yellow Jersey PR                    221 
  Charles Goodwin                    [phone] 
  Abena Affum                        808 
 

Notes to Editors:

KCR's objective is to build a substantial UK low-to-mid-priced residential property portfolio that generates both secure income flow and increasing net asset value for shareholders. KCR acquires blocks of studio, one-and two-bed apartments that are close to transport links, shopping and leisure.

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.

END

ACQUAUARWOANUAR

(END) Dow Jones Newswires

June 21, 2018 07:27 ET (11:27 GMT)