Motorpoint Group plc Smaller Related Party Transactions (1718K)

TIDMMOTR

RNS Number : 1718K

Motorpoint Group plc

05 July 2017

5 July 2017

Motorpoint Group plc

("Motorpoint" or the "Group")

Smaller Related Party Transactions

Motorpoint Group plc, the UK's largest independent vehicle retailer announces that the Group has agreed to vary the terms of its leases from Shoby Properties Limited (a related party of David Shelton who is a major shareholder of Motorpoint) in respect of its Derby, Birmingham and Burnley sites.

The Birmingham site is currently held on a lease to 2028, with upward only rent reviews to market rental value. Agreement has been reached to extend this lease to 2033, with an option to renew the lease for an additional 10 years, with rent reviews linked to RPI with a cap and collar arrangement limiting this to between 1% and 3% p.a.

The Burnley site is currently held on two leases to 2031, with upward only rent reviews to market rental value. Agreement has been reached to extend this lease to 2037, with an option to renew the lease for an additional 10 years, with rent reviews linked to RPI with a cap and collar arrangement limiting this to between 1% and 3% p.a. In addition, Shoby Investments has removed a reinstatement provision regarding a former building on the site that was demolished during Motorpoint's development of the site. This removes a potential future financial liability for Motorpoint.

Agreement has also been reached to vary the lease for the Derby compound providing Motorpoint with a right of pre-emption. The right is to purchase the property in the event the landlord wishes to make a disposal of it on or before 14 September 2028.

No consideration was paid to David Shelton or Shoby Properties Limited for entering into the variations in these leases as described above.

The variations have been approved by a committee of Independent Directors in accordance with the Relationship Agreement between, inter alia, (1) Motorpoint and (2) David Shelton dated 13 May 2016, having been considered to be promoting the interests of the Group.

These transactions fall within Listing Rule 11.1.10R and this announcement is made in accordance with Listing Rule 11.1.10R(c).

Enquiries:

 
 Motorpoint Group plc               Via FTI Consulting 
  Mark Carpenter, Chief 
  Executive Officer 
  James Gilmour, Chief Financial 
  Officer 
 FTI Consulting (Financial 
  PR) 
  Jonathon Brill 
  Alex Beagley 
  James Styles                      020 3727 1000 
 

Notes to editors

Motorpoint is the largest independent vehicle retailer in the United Kingdom. The Group's principal business is the sale of nearly-new vehicles, the majority of which are up to two years old and which have covered less than 15,000 miles. Motorpoint sells vehicles from brands representing over 95 per cent. of new vehicle sales in the United Kingdom, with models from Ford, Vauxhall, Volkswagen, Nissan, Hyundai, Audi and BMW being amongst the top sellers. The Group operates from 12 retail sites across the United Kingdom; Derby, Burnley, Glasgow, Newport, Peterborough, Chingford, Birmingham, Widnes, Birtley, Castleford, Oldbury and Sheffield, of which seven have opened in the last five years; together with a national contact-centre dealing with online enquiries.

More information is available at www.motorpointplc.com and www.motorpoint.co.uk

This information is provided by RNS

The company news service from the London Stock Exchange

END

MSCLIFVTDIIEIID

(END) Dow Jones Newswires

July 05, 2017 04:32 ET (08:32 GMT)