Business
Investment strategy
Investment strategy.
About this update from Artisanal Spirits Company Plc
[{"type":"text","content":"\n Artisan (UK) PLC\n08 May 2007\n\n8 May 2007\n\n\n\n Artisan (UK) plc\n\n\n Investment property strategy\n\n\n\nThe Board announced in its trading update on 16 February 2007 that it was\nexamining the possibility of utilising its in-house skills to re-establish a\nproperty investment arm within the Group. Following further review, the Board\nhas decided to pursue this strategy and hold selected properties from its\nongoing development property portfolio where it believes the covenant of the\ntenant, possibility for further development or medium term asset appreciation\nwill provide scope for additional attractive returns to the Group over the\ndisposal of the property on completion. It will also consider selectively\nacquiring third party properties where it believes that there is similar scope\nfor attractive returns.\n\n\nThe financial effects on the Group of retaining selected properties will\nprimarily be an increase in borrowings as these properties are financed and a\nrise in related interest charges offset by a rental income stream. Recognition\nthrough the income statement of the revaluation of the property at the point of\ncompletion as opposed to the recognition of profit on sale, is expected to have\na broadly neutral effect on the declared profit on ordinary activities before\ntaxation of the Group. In respect of the transaction announced today, more\ndetails of which are set out below, the revaluation surplus is expected to be\nreflected in the Income Statement with some contribution in the 15 months to 30\nJune 2007 and the balance in 2008.\n\n\nAs the first investment under this policy, the Board of Artisan is very pleased\nto announce that a major forward let of a 36,600 ft2 industrial unit has been\nsecured to Black Teknigas Limited, a subsidiary of Watts Industries Europe BV.\nThe agreement to lease is in respect of a bespoke unit at Colmworth Business\nPark, St Neots, due for build completion early 2008. There is provision for the\ndevelopment of an extension to this unit of 18,500 ft2, at the tenant's, option\nover the next 5 years. Further details of this forward let are set out in a\nseparate announcement also released today.\n\n\n\nArtisan (UK) plc\nChris Musselle Chief Executive 01480 436666\n [email protected]\n\nBrewin Dolphin Securities Limited Nominated advisers 0121 236 7000\nIfor Williams\n\...