11 July 2018
Prior to publication, the information contained within this announcement was deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 ("MAR"). With the publication of this announcement, this information is now considered to be in the public domain.
Panther Securities PLC
(the "Company" or the "Group")
Trading update including property disposal
Wimbledon Studios, 1 Deer Park Road, London
The Company takes great pleasure in announcing that it has today simultaneously exchanged and completed on the sale of its freehold interest in Wimbledon Studios for £18,800,000. The freehold interest was sold to a nominee of the Scottish Widows Property Authorised Contractual Scheme.
The studios were built in 1970 and currently provide internal accommodation of circa 140,000 square foot over circa 4.5 acres. It has a long history as studios and many household name productions took place there, including 'The Bill' for over 30 years, 'The Iron Lady', 'I'm a celebrity…get me out of here', and several popular music videos.
This property had a book value of £13,550,000 as at 31 December 2017 and was originally purchased vacant, including stock, equipment and fixed assets for circa £4,750,000 (plus stamp duty) in September 2010.
Being an entrepreneurial and opportunistic organisation, after buying the vacant property, the Group initially attempted to run its own film studio in this property but unfortunately this was not a successful venture.
Its current tenants, Marjan Television Network Ltd, took occupation in November 2014 and pay rent of £1,050,000 p.a.
This was a very interesting and ultimately rewarding set of transactions.
Update on sale of St Nicholas House, St Nicholas Road, Sutton
The Company previously announced on 16 April 2018 that the completion of St Nicholas House would occur in July 2018. Crown Agents and the Group, who have jointly marketed the property, however accepted a circa £500,000 additional deposit to extend the completion date to August 2018, of which approximately £300,000 is due to be received by the Group. This early payment will be deducted from the consideration receivable at completion. If completion is delayed beyond that now agreed it will become an additional fee to extend the contract.
Update on sale of Holloway Head, Birmingham
As previously announced on 16 April 2018, the Group expected to receive £470,000 of the purchase consideration at the end of May 2018. This amount was not received, however, the Company is still hopeful that it will receive the full remaining balance of £9,750,000 on the agreed completion date of 31 July 2018. To date the Company have received the following amounts:
· £850,000 initial deposit already taken to the income statement in the 2017 accounts; and
· £400,000 second deposit received in April 2018.
We also received £480,000 for various time extensions to the contract (£400,000 included in 2017 accounts and £80,000 received in February 2018).
Use of property sale proceeds
The considerable funds from the sale of Wimbledon Studios and the other property sales outlined above will be used partly to pay down debt and partly held for other opportunities. If the sales of St Nicholas House and Holloway Head complete, then the Group will be in a very strong liquid position to take advantage of any opportunities that may arise.
Swap agreement
The Company also announces that it has entered into a ten-year fixed rate interest swap agreement, with a £25,000,000 nominal value which commences on 1 December 2021. The swap's interest rate is 2.131% which will come into existence when the Company's current £25,000,000 swap with a rate of 4.63% ends, resulting in an annual saving of circa £625,000 p.a.
By entering this transaction, the Company will have certainty that its interest costs from December 2021 will be significantly lower compared to its current costs.
For further information:
|
|
Panther Securities plc: |
Tel: 01707 667 300 |
Andrew Perloff/ Simon Peters |
|
|
|
Allenby Capital Limited (Nomad and Joint Broker) |
Tel: 020 3328 5656 |
David Worlidge/ Alex Brearley |
|
