Business
Sale and Leaseback
Sale and Leaseback.
About this update from Avon Technologies Plc
[{"type":"text","content":"\n Avon Rubber PLC\n22 August 2006\n\n22 August 2006\n Avon Rubber p.l.c.\n\n SALE AND LEASEBACK OF HAMPTON PARK WEST\n\nAt the time of our Interim Statement on 22 May 2006 we said that the proposed\ndisposal of the Automotive business represented an opportunity to review the\nappropriate capital structure for the continuing Group.\n\nAs part of this process the Board announces that Avon Rubber p.l.c. ('Avon' or\nthe 'Group') has sold its freehold interest in the property at Hampton Park\nWest, Melksham, Wiltshire to Clerical Medical Managed Fund, a client of Insight\nInvestments for £12.36 million. The proceeds were paid in cash on completion and\nhave initially been applied to reduce indebtedness. The site is the Group's\nCorporate Headquarters and primary UK manufacturing factory base for its\nProtection and Engineered Products business.\n\nAvon has taken a 15 year full repairing and insuring lease of the building from\ncompletion of the sale with a break option for Avon after 10 years. The lease is\nat a rent of £0.8 million p.a., equating to £5 per sq ft. The property has a\ncarrying value of £9.0 million with a depreciation charge of £0.2 million p.a.\nThe transaction is expected to be earnings neutral.\n\n \n < ENDS >\n\nFor further enquiries, please contact:\n\n(Local/Trade Press) 01225 896300\nFiona Stewart\n\nWeber Shandwick Square Mile\nRichard Hews 020 7067 0700\nRachel Taylor\nStephanie Badjonat\n\nNOTES TO EDITORS: Avon Rubber p.l.c. is an international polymer engineering\ngroup adding value through material, manufacturing and industry sector\nexpertise. The Group is currently capitalised at approximately £50.9 million.\n\n\n\n This information is provided by RNS\n The company news service from the London Stock Exchange\n \n ","length":2064,"tagName":"div"}]