Helical PLC SALE OF NON-CORE RETIREMENT VILLAGES FOR £102M (3820W)
November 14 2017 - 2:01AM
UK Regulatory
TIDMHLCL
RNS Number : 3820W
Helical PLC
14 November 2017
14 November 2017
HELICAL PLC
('Helical'/ 'the Company')
HELICAL MAKES NON-CORE DISPOSAL WITH GBP102M SALE OF RETIREMENT
VILLAGES PORTFOLIO
Helical plc announces the sale of its retirement villages
portfolio to Legal & General for GBP102 million. As part of the
transaction, Helical has transferred the GBP46 million of debt
secured against the portfolio to the purchaser and will receive 50%
of the total net sale proceeds of GBP51m on completion, with the
remainder deferred for 12 months.
The portfolio comprises four retirement villages located at
Liphook in Hampshire, Faygate in West Sussex, Exeter in Devon and
Great Alne in Warwickshire. The villages are at varying stages of
development but on completion, the four schemes will deliver 694
units in total.
The disposal represents the largest element of the Company's
non-core disposal programme and its sale will see a reduction in
Helical's overall level of Group debt with the net cash proceeds
received used to repay borrowings, and a reduction in LTV of circa
5%. The sale, at a discount of 13% to its book value of GBP117m,
enables Helical to substantially complete its disposal strategy for
non-core assets and will be reflected in the half year results for
the period to 30 September 2017 to be announced tomorrow, the
15(th) November 2017. In the year to 31 March 2017, the retirement
village portfolio generated pre-tax profits of GBP1.8m before
provisions against stock of GBP5.3m, a net loss before tax of
GBP3.5m.
Following this sale, non-core assets comprise just 4% of the
Group's total portfolio. The Group's core focus remains on
high-quality London and Manchester offices and the logistics
sector.
Gerald Kaye, CEO of Helical, commented: "Whilst we have
generated good profits in the past from our retirement village
portfolio we firmly believe that now is the right time to sell our
interests, reduce our gearing and focus solely on our core sectors
where we expect to be able to generate stronger Shareholder returns
in the future."
For further information please contact:
Helical
Gerald Kaye / Tim Murphy Tel: 020 7629 0113
FTI Consulting
Dido Laurimore/Tom Gough/Richard Tel: 020 3727 1000
Gotla
This information is provided by RNS
The company news service from the London Stock Exchange
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