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Stobart details property transactions and placing

17 December 2015 07:43

Stobart Group has exchanged contracts for the purchase of freehold and long-leasehold interests to investment property assets at Speke in Liverpool on which it currently has leasehold interests. The transactions were worth GBP16.75m in total.

"These purchases will create a number of opportunities for the site, one of which would be for Stobart to enter into a new, extended lease with the existing sub-tenant.

Stobart is acquiring the freehold and long-leasehold interests to the site, which is used by the tenant for storage, from the receivers to Towerbeg Limited for GBP14.5m cash, payable on completion.

The Group has also exchanged contracts to acquire a freehold to an adjoining site, which is used for the same purpose, for GBP2.25m in cash, payable on completion. The purchase of these sites will result in the Group saving annual rental payments of GBP0.75m.

The total consideration for the two purchases, along with an element of capital expenditure at the site and transaction costs, will be funded by a sale of ordinary shares of 10p each in the capital of the Company, which are currently held in treasury, to funds managed by Woodford Investment Management LLP.

The Group has sold 16,396,300 shares ("Treasury Shares"), representing 5.0 per cent. of the Company's existing issued share capital, at 110 pence per share, a premium of 1.9 per cent. to the closing mid-market price of 108 pence on 16 December 2015, to raise £18.0 million before expenses. The property transactions are expected to complete on or around 23 December 2015.

Story provided by StockMarketWire.com

Related Company: STOB

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