Business
Sale & Leaseback
Sale & Leaseback.
About this update from Rank Group Plc
[{"type":"text","content":"\n Rank Group PLC\n14 July 2006\n\n\n The Rank Group agrees sale & leaseback and transfer of surplus leasehold\n properties\n\n\nThe Rank Group Plc ('Rank') has agreed a net £172m transaction with Earth\nEstates Limited and Solarus Estates Limited ('Earth-Solarus') for the sale and\nleaseback of 43 of Rank's UK properties and the transfer of liabilities relating\nto a further 44 surplus leasehold properties.\n\nThe agreement includes the £211m sale and leaseback of a portfolio of 40 Mecca\nbingo clubs and four Grosvenor casinos (one property comprises both a casino and\na bingo club). Rank will lease back the properties over 15 years at an initial\nrate of £11.2m per annum. This represents an initial yield of 5.3% on the\nfreehold portfolio. The book value of the properties was £137m.\n\nIn addition, Rank will transfer to Earth-Solarus liabilities relating to 44\nsurplus leasehold properties. The leasehold liability transfer price is £39m.\n\nThere will be a pre-tax net book gain on the transaction of approximately £53m.\nIt is not anticipated that the transaction will attract any capital gains tax.\n\nThe proceeds of the transaction will be used to pay down debt.\n\nBoth Earth Estates Limited and Solarus Estates Limited are joint venture\ncompanies between William Pears and the Khalastchi family.\n\n\n -ends-\n\n\nEnquiries:\n\n\nThe Rank Group Plc Tel: 020 7535 8031\nDan Waugh, Director of Investor Relations\n\n\nMaitland Tel: 020 7379 5151\nSuzanne Bartch\n\n\n\n\n\n This information is provided by RNS\n The company news service from the London Stock Exchange\n \n ","length":1807,"tagName":"div"}]