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Acquisition of Concorde Park, Maidenhead

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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 £14.6 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 £14.6 million.

The 71,500 sq ft park is currently 36.6% let to three tenants producing a combined rental income of £627,372 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 £7.4 million.

The acquisition of this well-located property, which is set to benefit from Crossrail, was primarily funded by a £12.791 million drawdown from the Company's recently agreed £100 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 £14.6 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.

 

Circle Property Plc              

 +44 (0)207 930 8503

John Arnold, CEO

Edward Olins, COO

 

 

 

 

 

Cenkos Securities

+44 (0)207 397 8900

Azhic Basirov

Katy Birkin 

  

 

 

 

 

Radnor Capital

+44 (0)203 897 1830

Joshua Cryer

Iain Daly

 

 

 

 

 

Camarco

+44 (0)203 757 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 £10.34m per annum, compared to contracted rent of £7.61m 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 £139.2m.

1 Source: Radnor Capital research, 31 March 2019

 


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END
 
 
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Price: 194

Market: LSE
Market Cap: £55.39 m
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