Dukemount Capital PLC Letter of Intent Signed for First Acquisition (1651G)
May 25 2017 - 2:00AM
UK Regulatory
TIDMDKE
RNS Number : 1651G
Dukemount Capital PLC
25 May 2017
25 May 2017
Dukemount Capital Plc
("Dukemount" or the "Company")
Binding Letter of Intent Signed for First Acquisition
Dukemount Capital plc, the high yield Real Estate Development
Company in the property sector, has signed a binding letter of
intent (LOI) for a period of two years whereby Dukemount and Larch
Housing Association Limited (LHA) will identify properties, with a
minimum total portfolio value of GBP5 million and which are
suitable for leasing to Supported Living tenants.
Under a 30 day exclusivity period, Dukemount will acquire the
identified properties, subject to valuation, due diligence and
contract on the basis that LHA agrees to sign a 50 year lease at
6.5% per annum plus CPI based on the purchase price, prior to any
firm commitment by Dukemount.
Each property in the portfolio in this deal will be focused on
the supported living sector with rents arranged beforehand with the
Housing Association and adjusted annually by inflation over the
full period of the lease.
This initial deal of GBP5 million is the first one aimed at
filling the pipeline of properties that our institutional contacts
are keen to see and fund. As highlighted during the listing
process, and in the investor presentation on the company website
(www.dukemountcapitalplc.com.), the management team will continue
to work to source these transactions to provide product for the
long term investing institutions that are so starved of the CPI
linked yield they require.
Supported living is a fast-growing concept that was developed in
Canada as an alternative to institutional care for people with
disabilities and brought to the UK in the 1990's. The main
principles of supported living are that people with disabilities
own or rent their home, have control over the support they get and
how they live their lives.
Dukemount Executive Chairman Geoffrey Dart said, "We have been,
and continue to be, approached by a number of housing associations
and development providers around the UK and are pleased to announce
the signing of the first LOI. The supported living sector is a fast
growing sector as more recipients are choosing to have an active
place in the community and is one area which ties in with our plan
of offering attractive returns to yield seeking institutions and
our shareholders whilst also being socially relevant.
For further information, please contact:
Dukemount Capital Plc Tel: +44 (0) 7874 762
821
----------------------------- --------------------------------
Timothy Le Druillenec
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Walbrook PR (Media and Tel: +44 (0) 207 933
Investor Enquiries 8780
----------------------------- --------------------------------
Paul Cornelius / Gary dukemountcapital@walbrookpr.com
Middleton
----------------------------- --------------------------------
Optiva Securities Ltd Tel: +44 (0) 203 137
1906
----------------------------- --------------------------------
Christian Dennis - Corporate
Broker
----------------------------- --------------------------------
Jeremy King - Corporate
Broker
----------------------------- --------------------------------
Peterhouse Corporate Tel: +44 (0) 207 469
Finance Limited 0930
----------------------------- --------------------------------
Lucy Williams/Duncan
Vasey
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This information is provided by RNS
The company news service from the London Stock Exchange
END
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