Business
Burnside House Property Update
Burnside House Property Update.
About this update from Plexus Holdings
[{"type":"text","content":"\n \n \n \n \n \n Plexus Holdings PLC / Index: AIM / Epic: POS / Sector: Oil equipment & services\n \n \n \n \n 1 March 2023\n \n \n \n \n \n Plexus Holdings PLC ('Plexus' or 'the Company')\n \n \n \n \n \n \n Burnside House Property Update\n \n \n \n \n \n \n Plexus Holdings PLC, the AIM quoted oil and gas engineering services business and owner of the proprietary POS-GRIP® friction-grip method of wellhead engineering, known for its safety, time and cost saving capabilities,is pleased to provide an update on the Company's arrangements with its Burnside House property in Aberdeen.\n \n \n \n \n \n Following the sale of the Company's POS-GRIP® exploration rental wellhead business to TechnipFMC ('TFMC') in 2018, Plexus consolidated its staff and operations at Burnside House, Dyce, Aberdeen. As part of this transaction, TFMC took a three-year lease on Plexus' other main building, Plexus House, Dyce, Aberdeen. Following the expiry of the lease with TMFC in 2021, Plexus was left with additional space which was not required for its day-to-day operations and decided to consolidate its own operations at Plexus House. In order to control costs and operate the business as efficiently as possible, Plexus has recently completed a sub-lease of Burnside House to a third party for a period of 15 years, at an initial rent of £76,146 per annum for the first four years rising to £215,000 per annum for the next three years, following which a review will take place to adjust the annual rental payment to an open market rate. Plexus' title to Burnside House is a ground lease which expires in 2076 (the \"Leasehold Interest\") and requires the leaseholder to pay ground rent on an annual basis.\n \n \n \n \n \n \n Related Party Transaction\n \n \n \n Alongside the Company's agreement to sub-let Burnside House, the Company carried out an assessment to establish if it would be possible to sell the Leasehold Interest to a third party, in order to accelerate receipt of the cash. As it was deemed not possible to conclude such a transaction with an external party on acceptable terms in a timely manner, the Company has agreed to sell the Leasehold Interest, along with all associated leasehold liabilities, to Burnside House Limited (the \"Transaction\"), a private company which has been established for the pur...