Business
Acquisition of Properties
Acquisition of Properties.
About this update from Conygar Investment Company Plc
[{"type":"text","content":"\n RNS Number : 6680C Conygar Investment Company PLC(The) 18 November 2009 \n \n18 November 2009\nThe Conygar Investment Company PLC\nAcquisition of Properties for £44.6 million\n\nThe directors of The Conygar Investment Company PLC (\"Conygar\") are pleased to announce that Conygar has exchanged contracts to acquire seven freehold and long leasehold buildings for a total cash consideration (including costs) of £44.6 million.\n\nThe portfolio consists of:\n\n\n\nBrennan House, Farnborough Aerospace Centre, Hampshire\n\n\nAker Village (three units), Kirkhill, Aberdeen\n\n\nCambridge Road, Whetstone Business Park, Leicester\n\n\nKelvin II, Kelvin Close, Birchwood Park, Warrington\n\n\nCrystal Drive, Sandwell Business Park, Oldbury, West Midlands\n\n\n\nThe annual rent roll is approximately £4.41 million representing a net initial yield of 9.9% and the buildings comprise 562,000 square feet of lettable space. All buildings are fully let and key tenants include Hewlett Packard Limited, Johnson Controls Limited, Cadbury UK Limited and Aker Solution ASA. \n\nThe properties offer significant active management and development potential, which Conygar intends to exploit and realise in due course.\n\nCompletion is expected to occur within five working days. The consideration will be satisfied out of Conygar's existing cash resources using part of the funds raised in September 2009 in accordance with our stated strategy. The directors expect that the portfolio will be refinanced in due course in order to release additional funds for further business opportunities. \n\nRobert Ware, Chief Executive of Conygar, commented: \"This is an excellent opportunity for Conygar to add and realise significant value using our property management skills to restructure the portfolio. Negotiations included the vendor's bank and we were able to exchange within 10 working days. With this track record, we hope to do more similar deals.\"\n\nFor further information please contact:\n\nThe Conygar Investment Company PLC\nRobert Ware: 020 7408 2322\nPeter Batchelor: &n...