Business
£8.4 million of acquisitions from Inland Homes
£8.4 million of acquisitions from Inland Homes.
About this update from Kcr Residential Reit Plc
[{"type":"text","content":"\n \nRNS Number : 1641T KCR Residential REIT PLC 02 July 2018 \n\n2 July 2018\n \nKCR Residential REIT Plc\n \n(\"KCR\" or \"the Company\")\n \n£8.4 million of acquisitions from Inland Homes under strategic relationship agreement\n-New build apartment block in Southampton and Inland Commercial Ltd-\n \nFurther to the announcement on 21 June 2018, KCR Residential REIT Plc (\"KCR\") is pleased to announce that it has completed the agreement for lease of Block B, Chapel Riverside (\"Block B\"), a new build apartment block in Southampton, and has acquired the entire share capital of Inland Commercial Ltd, a special purpose vehicle (\"SPV\"), from Inland Homes Plc (\"Inland\"), the leading brownfield regeneration specialist and housebuilder with a focus on the South and South-East of England. \n \nThe transactions are the first agreed between the two companies following the May announcement of the establishment of a strategic relationship to support the delivery of high quality, low-to-mid-priced housing for rent. The agreement gives KCR right of first refusal over an initial identified pipeline of Inland assets, in return for Inland receiving a combination of cash and equity in KCR. \n \nBlock B is a new-build apartment block consisting of 27 two-bedroom apartments and 28 dedicated car parking spaces. It forms part of Inland's major Chapel Riverside redevelopment project in Southampton, Hampshire, being undertaken in partnership with Southampton City Council. It is located on the waterfront in a prominent location on the west bank of the River Itchen, within walking distance of Ocean Village and the city centre. Block B is being developed by Inland's construction arm, Inland Partnerships, and is scheduled for completion and hand over to KCR in August 2018. \n \nOn completion, KCR will be granted a 999-year long-leasehold interest at a peppercorn rent for a total consideration of £5.82 million. KCR estimates the rental value of Block B at £276,000 per annum, generating a projected gross annual yield on consideration of 4.74%. The consideration is payable in tranches with the final payment due in October 2018.\n \nInland Commercial Ltd owns two new-build supermarket properties, one freehold and one long leasehold, that support major residential developments in the South East.&n...