Business
Sale & Lease Back
Sale & Lease Back.
About this update from Arbuthnot Banking Group Plc
[{"type":"text","content":"\n Arbuthnot Banking Group PLC\n12 December 2006\n\n\n\n ARBUTHNOT BANKING GROUP PLC\n\n SALE AND LEASEBACK OF ARBUTHNOT HOUSE\n\nArbuthnot Banking Group PLC today announces that it has exchanged contracts on\nthe sale and leaseback of Arbuthnot House, 20 Ropemaker Street. The Board\ndecided to proceed with the transaction as a result of a £35 million offer\nresulting in a profit of £15 million over the original cost and the favourable\nleaseback terms that have been achieved. Commenting on the transaction Henry\nAngest, Chairman and Chief Executive said:\n\n'This transaction demonstrates our ability to be opportunistic in acquiring a\nbuilding at close to the bottom of the property market and selling in a\nfavourable market. The good price together with the operational flexibility\ngranted in the lease gives the business more opportunities over the medium term.\nThe Board will now consider its options with regards to the extra capital this\ngives the Group.'\n\nArbuthnot Banking Group PLC acquired the building in August 2003 and following a\nrevaluation in 2004 the building was carried in the 31 December 2006 balance\nsheet at £20.7 million. After allowing for associated costs, a book profit\n(before tax) of approximately £11.0 million is expected to arise on the sale.\nCompletion of the sale is expected to take place on 20 December 2006. The\nbuilding will be leased back on a 15 year term for the entire 42,000 sq ft with\na rent of £1.7 million p.a. with an ability to break the lease at 5 and 9 years.\n\nIn the second half of the year, Arbuthnot Banking Group strengthened its\nmanagement team with the appointment of Gary Jennison (Chief Executive, Secure\nTrust Bank) and Paul Sheriff (Group Finance Director). Following these\nappointments there has been a restructuring incurring additional exceptional\ncosts in the second half which are expected to be circa £0.9m.\n\nIn accordance with its normal practice, Arbuthnot Banking Group PLC intends to\nmake a trading statement in early January to update the market on performance in\nthe second half of 2006.\n\nPress enquiries:\n\nArbuthnot Banking Group PLC Tel: 020 7012 2400\nHenry Angest, Chairman and Chief Executive\nAndrew Salmon, Chief Operating Officer\nPaul Sheriff, Group Finance Director\n\nMaitland Tel: 020 7379 5151\nEmma Burdett\nLydia Pretzlik\n\n\n\n\n\n This infor...