Arbuthnot Banking Group PLC
12 December 2006
ARBUTHNOT BANKING GROUP PLC
SALE AND LEASEBACK OF ARBUTHNOT HOUSE
Arbuthnot Banking Group PLC today announces that it has exchanged contracts on
the sale and leaseback of Arbuthnot House, 20 Ropemaker Street. The Board
decided to proceed with the transaction as a result of a £35 million offer
resulting in a profit of £15 million over the original cost and the favourable
leaseback terms that have been achieved. Commenting on the transaction Henry
Angest, Chairman and Chief Executive said:
'This transaction demonstrates our ability to be opportunistic in acquiring a
building at close to the bottom of the property market and selling in a
favourable market. The good price together with the operational flexibility
granted in the lease gives the business more opportunities over the medium term.
The Board will now consider its options with regards to the extra capital this
gives the Group.'
Arbuthnot Banking Group PLC acquired the building in August 2003 and following a
revaluation in 2004 the building was carried in the 31 December 2006 balance
sheet at £20.7 million. After allowing for associated costs, a book profit
(before tax) of approximately £11.0 million is expected to arise on the sale.
Completion of the sale is expected to take place on 20 December 2006. The
building will be leased back on a 15 year term for the entire 42,000 sq ft with
a rent of £1.7 million p.a. with an ability to break the lease at 5 and 9 years.
In the second half of the year, Arbuthnot Banking Group strengthened its
management team with the appointment of Gary Jennison (Chief Executive, Secure
Trust Bank) and Paul Sheriff (Group Finance Director). Following these
appointments there has been a restructuring incurring additional exceptional
costs in the second half which are expected to be circa £0.9m.
In accordance with its normal practice, Arbuthnot Banking Group PLC intends to
make a trading statement in early January to update the market on performance in
the second half of 2006.
Press enquiries:
Arbuthnot Banking Group PLC Tel: 020 7012 2400
Henry Angest, Chairman and Chief Executive
Andrew Salmon, Chief Operating Officer
Paul Sheriff, Group Finance Director
Maitland Tel: 020 7379 5151
Emma Burdett
Lydia Pretzlik
This information is provided by RNS
The company news service from the London Stock Exchange