Business
Acquisition of The Osprey Management Company Ltd
Acquisition of The Osprey Management Company Ltd.
About this update from Kcr Residential Reit Plc
[{"type":"text","content":"\n \nRNS Number : 5788X K&C REIT PLC 09 May 2016 \n\n9 May 2016\nK&C REIT plc\n(\"K&C\" or the \"Company\")\n \nAcquisition of The Osprey Management Company Ltd (\"Osprey\")\n \nK&C REIT plc, the residential real estate investment trust (\"REIT\") group, is pleased to announce that, on 6 May 2016, the Company agreed to acquire the entire issued share capital of The Osprey Management Company Limited from Ms Susan Hards for an aggregate consideration of £1.6 million (the \"Acquisition\"). Osprey owns a portfolio of freehold interests in a number of high quality retirement and residential properties in London and southern England. In addition, Osprey provides property management services to the occupants in most of the properties in the freehold portfolio and to other residential and industrial properties. The consideration will be satisfied by a payment of £1.3 million in cash and issuance to the vendor of three million K&C ordinary shares credited as fully paid up at 10p per share.\nHighlights of Osprey\n· The three core properties in the portfolio have been independently valued at £2.55 million, comprising £1.45 million of freehold value and a further £1.1 million of leasehold value in the three apartments owned by Osprey and occupied by managers of these properties. The latter will require the creation of new leasehold interests as the apartments are held within the freehold envelope\n· Pre-tax profit for the past four years, adjusted for non-recurring past directors' costs, is 7.2% per annum of the Acquisition price and 8.8% per annum of the cash element of the consideration\n· The Acquisition is well aligned with K&C's investment strategy\n· Properties are located in growth areas such as Bromley and Finchley, with sample units independently valued at between £220,000 and £500,000 each\n· The Acquisition is expected to provide material NAV enhancement through buying in leases, the increasing value of reversionary interests and the sales of lease extensions\n· Independent commentators predict strong and growing demographic demand...