TIDMCLDN
RNS Number : 0120V
Caledonia Investments PLC
30 October 2017
CALEDONIA INVESTMENTS PLC
SALE OF THE SLOANE CLUB TO QUEENSWAY JOINT VENTURE FOR
GBP80.6M
Caledonia Investments plc ("Caledonia" or the "Company") is
pleased to announce that it has today sold its 100% interest in The
Sloane Club (the "Club"), the private members club located in the
heart of Chelsea, London, to Sloane Investment Limited, a special
purpose vehicle jointly owned by JK Chelsea Holdings Limited, an
affiliate of the Queensway Group ("Queensway"), and Clearbell
Property Partners III LP, a real estate fund advised by Clearbell
Capital LLP ("Clearbell").
The headline enterprise value agreed for the Club was GBP80.6m,
which after fees and other transaction costs, has delivered net
proceeds of GBP80.2m in cash to Caledonia, GBP3.5m of which was
received as a pre-sale distribution of trading profit. The cash
proceeds will be held on deposit for future investment.
The carrying value of the Club in Caledonia's audited balance
sheet as at 31 March 2017, and similarly in the Company's net
assets used to calculate its unaudited diluted net asset value per
share ("NAV per share") as at 30 September 2017 of 3259p (announced
on 6 October 2017), was GBP61.4m. Adjusted for the impact of the
sale of the Club, Caledonia's NAV per share as at 30 September 2017
would have been 3290p. For the financial year to 31 March 2017, the
Club generated total pre-tax profits of GBP2.8m and paid Caledonia
a total of GBP1.8m in dividends and interest.
The Club was originally acquired by Caledonia in 1991. Under
Caledonia's ownership, the Club has undertaken a significant
extension as well as upgrading many of its facilities and
increasing the number of rooms available for members. The Club has
been run for most of this period by Tony Murkett, Managing
Director, who will remain with the Club following the sale.
Both Queensway and Clearbell are supportive of the Club's long
term strategy and intend to continue, with the incumbent management
team, to upgrade and improve the Club's facilities.
Commenting on the sale, Duncan Johnson, Caledonia's Head of
Unquoted Investments, said:
"With Caledonia's support for over a quarter of a century, The
Sloane Club has grown to be a unique asset in the heart of London's
Chelsea and exemplifies Caledonia's long term approach to
investing. We are delighted to have identified new owners for the
Club who share a similar investment ethos to Caledonia's. We wish
Tony Murkett and his team continuing success in the future."
30 October 2017
For further information contact:
Caledonia Investments
plc
Will Wyatt, Chief
Executive +44 20 7802 8080
Duncan Johnson,
Head of Unquoted
Investments
Media contact:
Tulchan Communications
Peter Hewer
Lisa Jarrett Kerr +44 20 7353 4200
This announcement contains inside information relating to
Caledonia.
END
Notes for editors:
Caledonia Investments plc
Caledonia is a self-managed investment trust company listed on
the London Stock Exchange with net assets of approximately GBP1.8bn
as at 30 September 2017. The Company maintains a concentrated
portfolio of international quoted, unquoted and fund investments
and has paid an increasing annual dividend for 50 years.
In the unquoted arena, Caledonia seeks to invest GBP25m to
GBP100m in private companies either on a majority or minority
basis, providing a meaningful presence and growth capital
supporting double-digit operating margins. Its current unquoted
portfolio includes Seven Investment Management (a provider of
discretionary fund management, asset management and self-invest
platform services), Gala Bingo (the UK market leading retail bingo
operator), Cobehold (a European unquoted investment house),
Liberation Group (the market leading Channel Islands pub,
restaurants and drinks business) and Choice Care Group (a UK
learning disability care homes provider).
For additional information on Caledonia, please visit
www.caledonia.com.
The Sloane Club
Originally established as a club for serving and former lady
officers of the Armed Forces in World War II, The Sloane Club is a
private members club located in the heart of Chelsea.
The 75,000 sq.ft. prime central London Club now offers over 130
bedrooms, fine dining and spa facilities to a membership of over
3,700.
For more information on the Club, please visit
www.sloaneclub.co.uk.
Queensway Group
Queensway is a family-owned business that acquires, develops and
operates a broad portfolio of real estate across the hotels,
restaurants & coffee houses and property development &
lettings sectors. Queensway has been in the hotel business in
London since 1973.
For more information on Queensway, please visit
www.queensway.com.
Clearbell Capital
Clearbell is an independently-owned real estate fund management
business specialising in UK property investment, development and
asset management.
The firm is led by experienced real estate investment
professionals with long established UK market expertise spanning
multiple cycles and across various property types. The five-strong
partnership comprises Manish Chande, Nick Berry, Sally
Doyle-Linden, Rob Mills and Rob West.
Clearbell manages capital from investors around the world
including pension fund, fund of funds and not-for-profit
investors.
Clearbell seeks to identify undervalued opportunities across a
number of property sectors in the UK and to maximise returns by
applying its investment and asset management expertise.
For further information please go to www.clearbell.com.
Transaction
The sale of The Sloane Club was led by Tim Lewis, Alex Mills and
Sally Flanagan for Caledonia.
Catalyst (Andy Currie) and Savills (Gary Witham and Rob
Stapleton) provided corporate finance advice to Caledonia with
legal advice provided by Taylor Wessing (Ed Waldron).
Neither the contents of the above-named websites, nor the
contents of any website accessible from hyperlinks on such websites
(or any other website) is incorporated into, or forms part of, this
announcement.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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