27 May 2016
K&C REIT plc
("K&C" or the "Company")
Disposal of 49 Cheap Street, Newbury, Berkshire
K&C REIT plc, the residential real estate investment trust ("REIT") group, is pleased to announce that its subsidiary, Kensington & Chelsea REIT Limited ("K&C Ltd"), exchanged contracts yesterday evening for the sale of 49 Cheap Street, the last of the group's three 'non-core' properties, for a gross cash consideration of £210,000. The sale is expected to complete by 24 June 2016.
49 Cheap Street is a retail premises with a first-floor flat above that was acquired in March 2014 for £215,000. The property is being sold with vacant possession and is therefore not currently generating any rental income.
K&C Ltd acquired three properties in Berkshire, including 49 Cheap Street, to make up the initial portfolio prior to admission of the Company's ordinary shares to trading on AIM on 3 July 2015. As stated in the Company's Admission Document, these properties were not intended to form a material part of the Company's ongoing property portfolio and the directors are pleased to confirm that the disposal of 49 Cheap Street completes the planned disposal of these original properties. The three 'non-core' properties were in total sold for approximately £55,000 more than the aggregate purchase price, generating a profit of approximately £43,000.
The net proceeds of the disposal of 49 Cheap Street will be available for general corporate purposes.
Contacts:
K&C REIT
Tim James, Managing Director |
[email protected]
+44 (0) 7768 833 029
www.kandc-reit.co.uk |
Stockdale Securities
Robert Finlay/Rose Ramsden |
+44 (0) 20 7601 6115 |
Yellow Jersey PR
Philip Ranger/Harriet Jackson |
+44 (0) 7768 534 641 |
Notes to Editors:
K&C's objective is to build a substantial residential property portfolio that generates secure income flow for shareholders through the acquisition of SPVs (Special Purpose Vehicles) with inherent historical capital gains. The Directors intend that the group will acquire, develop and manage residential property assets in Central London and other key residential areas in the UK.
