Business
Sale & Leaseback of Further Tuffnells Properties
Sale & Leaseback of Further Tuffnells Properties.
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[{"type":"text","content":"\n \nRNS Number : 7026S Connect Group PLC 07 November 2019 \n\nTHE INFORMATION CONTAINED IN THIS ANNOUNCEMENT IS CONSIDERED TO HAVE BEEN INSIDE INFORMATION PRIOR TO ITS RELEASE, AS DEFINED IN ARTICLE 7 OF THE MARKET ABUSE REGULATION (EU) 596/2014. UPON PUBLICATION OF THIS ANNOUNCEMENT THE INSIDE INFORMATION IS NOW CONSIDERED TO BE IN THE PUBLIC DOMAIN FOR THE PURPOSES OF THAT REGULATION.\n \n \n7 November 2019\n \nConnect Group PLC\n(\"Connect Group\" or \"the Company\")\n \n \nThe Proposed Sale and Leaseback of a Second Tranche of Tuffnells Properties\n \n \nFurther to Connect Group's announcement on 23 September 2019 that its subsidiary, Tuffnells Parcels Express Limited (\"Tuffnells\"), had successfully exchanged contracts for the sale of six Tuffnells distribution depots as part of a proposed sale and leaseback transaction of selected Tuffnells freehold and long leasehold properties, Connect Group is pleased to announce that Tuffnells has now exchanged contracts for the disposal of a further two Tuffnells distribution depots to separate and independent purchasers as noted below (together, the \"Tuffnells Sale Portfolio No. 2\") for an aggregate sale consideration of £5,170,000 (plus VAT).\n \nTransaction details\n \nThe Group has agreed to sell each property within the Tuffnells Sale Portfolio No. 2 on the following key terms:\n \n\n\n\n\nTuffnells Distribution Depot\n \n\n\nPurchaser\n\n\nSale Consideration (plus VAT)\n\n\nLease Terms\n \n\n\n\n\nAnnual Rental (plus VAT)\n \n\n\nTerm (from date of Completion)\n\n\n\n\nBelvedere\n\n\nCampus Overseas Corp (registered in British Virgin Islands)\n\n\n£4,800,000\n\n\n£245,083\n\n\n10 years\n\n\n\n\nCarnforth\n\n\nReal Estate Investments Group Limited\n\n\n£370,000\n\n\n£40,817\n\n\n20 years\n\n\n\n\nTOTAL\n \n\n\n£5,170,000\n\n\n£285,900\n\n\n \n\n\n\n\n \nTuffnells will receive consideration for each property within the Tuffnells Sale Portfolio No. 2 in cash, payable on completion. Each purchaser will, as part of an associated leaseback transaction for each property, let each of the respective properties back to Tuffnells on a full repairing and insuring lease for the term noted in the table above, in each case with effect from the date of completion of the sale of the respective propert...