Business
Sale of Freehold Property
Sale of Freehold Property.
About this update from Seascape Energy Asia Plc
[{"type":"text","content":"\n RNS Number : 5611I Liberty PLC 15 March 2010 \n \n\nFOR IMMEDIATE RELEASE\n15 March 2010\n \n \nLIBERTY PLC:\nSALE OF FREEHOLD OF FLAGSHIP STORE FOR\n£41.5 MILLION\n \nFurther to the announcement made on 1 March 2010, Liberty Plc (\"Liberty\" or \"the Company\") which is 68% owned by MWB Group Holdings Plc (\"MWB\") today announces that it has exchanged contracts for the sale of the freehold interest in its 125,000 sq ft flagship store on Great Marlborough Street, London W1, for £41.5 million to Sirosa Liberty Limited. The sale price reflects an initial yield of 4.8%.\n \nThe sale follows a six month review by Liberty of a range of options and initiatives that would enable the Company to build upon its success since the launch of the Renaissance of Liberty in February 2009.\n \nOn completion of the sale, Liberty will lease back the store and continue to operate as one of London's most cutting edge, but accessible, design-led retailers from the Tudor Building. Under the terms of the proposed deal, Liberty will take an institutional 30-year lease on the building at an initial annual rent of £2.1 million, with five yearly fixed rent reviews during the intervening period. The funds will be used by Liberty to repay its bank and other debt and thereafter to provide additional financial resources for the Company.\n \nThe freehold of the flagship store was valued at £30.25 million at 31 December 2009, the date of Liberty's recent year end, based on an annual rental of £2.0 million and an eight year lease term. The sale price therefore represents a substantial surplus over that valuation, reflecting the increased demand for prime freehold property assets in Central London.\n \nAt the time of its trading statement in January 2010, Liberty reported overall revenue for the year to December 2009 grew by 20% and that the flagship store had generated a 16% revenue increase during the course of 2009 compared to the previous year. All lines of business increased their revenue with Liberty on-line enjoying a particularly strong Christmas.\n \nTrading has continued to benefit from the Renaissance of the Regent Street flagship store in February 2009 which drove footfall and market share over the remainder of the year and has continued to do so in 2010.\n \nThe sale is conditional on approv...