Business
Sale and Leaseback and special dividend
Sale and Leaseback and special dividend.
About this update from Arbuthnot Banking Group Plc
[{"type":"text","content":"\n \nRNS Number : 7104P Arbuthnot Banking Group PLC 04 October 2013 \n \n\nFOR IMMEDIATE RELEASE\n4 October 2013\n \nArbuthnot Banking Group PLC \nSale and Leaseback and intention to declare a special dividend\nArbuthnot Banking Group PLC (\"Arbuthnot\" or the \"Group\") is pleased to announce that it has exchanged contracts with GMS BRICKS a discretionary investment company (the \"Buyer\") for the sale and leaseback of 7-21 Wilson Street, London EC2M 2TD (\"Wilson Street\"). Arbuthnot expects to complete the sale and leaseback agreement within ten working days. Arbuthnot acquired the freehold of Wilson Street in August 2012.\nWilson Street had a net book value of £16.5 million as at 31 August 2013. Under the terms of the sale and leaseback agreement, the cash consideration receivable by Arbuthnot is £26.215 million payable on completion. The Buyer will also provide £5.4 million to be drawn by Arbuthnot to fund a renovation and fit out programme of Category A works. After providing £3.2 million for the rent payable during the period of refurbishment prior to occupation and £0.7 million of advisor and other costs the net gain is expected to be £5.8 million.\nThe lease on the Group's current premises at 20 Ropemaker Street, London, EC2Y 9AR, costs £1.7 million per annum and has a break option in June 2015. The Group has exercised the break option and Wilson Street will become the head office for Arbuthnot Banking Group PLC, the principal location for Arbuthnot Latham & Co., Limited and London offices for Secure Trust Bank PLC.\nArbuthnot will enter into a 16 year lease on Wilson Street, with a break at 11 years and rent reviews after 5, 10 and 15 years. The initial rent is £1.75 million per annum. \nThe net gain resulting from this transaction will enable the Group to pursue additional growth opportunities that currently exist for both of its banking businesses.\n Also, in recognition of the 180 year anniversary celebrated by Arbuthnot Latham and Co., Limited, the Board of Arbuthnot would expect to declare a special dividend of 18 pence per share following the completion of the sale and lease back transaction. A further announcement relating to the special dividend will be made once the completion has taken place.\n \nEnquiries:\nArbuthnot Banking Grou...