Business
Disposal of Properties
Disposal of Properties.
About this update from Conygar Investment Company Plc
[{"type":"text","content":"\n RNS Number : 9429D Conygar Investment Company PLC(The) 10 December 2009 \n \n10 December 2009\nThe Conygar Investment Company PLC\nDisposal of Properties for £32.8 million\n\nThe directors of The Conygar Investment Company PLC (\"Conygar\" or \"the Company\") are pleased to announce that the Company has exchanged contracts for the sale of a portfolio of 13 properties to Threadneedle UK Property Trust for a gross consideration of £32.8 million, 19% above the Company's independent portfolio valuation as at 30 September 2009. Completion is expected to occur on 15 December 2009. The sale price reflects a combined net initial yield of 7.45%.\n\nThe portfolio was part of the properties acquired following the recent takeover by Conygar of The Advantage Property Income Trust Limited (\"TAP\"). This transaction brings the value of assets disposed from the TAP portfolio to £37 million. The valuation of the remaining TAP portfolio is £121 million, based upon the Company's independent 30 September 2009 valuation, with net annual rent of approximately £11 million. All of the net proceeds from the disposal will be used to repay existing TAP borrowings and it is anticipated that, post-completion, the remaining TAP portfolio loan-to-value ratio will fall to approximately 49%, which is in line with our stated strategy at the time of the offer for TAP.\n\nRobert Ware, Chief Executive of Conygar, said: \n\n\"We are delighted with the TAP acquisition and also to have disposed of this portfolio at a significant premium to our September 2009 valuation. In addition to delivering further profit for our shareholders this enables us to resolve the TAP gearing at a single stroke. We will not necessarily be able to achieve this excellent premium across the entire TAP portfolio but this a tremendous start.\"\n\n\nFor further information please contact:\n\nThe Conygar Investment Company PLC\nRobert Ware: 020 7408 2322\nSteven Vaughan: 020 7408 2322\n\n\nOriel Securities Limited&...