Circle Property PLC Circle delivers 11% growth in portfolio value (6143S)
October 04 2017 - 1:00AM
UK Regulatory
TIDMCRC
RNS Number : 6143S
Circle Property PLC
04 October 2017
04 October 2017
Circle Property Plc
("Circle" or the "Company")
Circle delivers 11% growth in portfolio value ahead of interim
results
Valuation and Trading update
Circle Property Plc ('Circle'), a specialist UK regional office
investment, development and management company, provides the
following update on trading ahead of its results for the six months
ended 30 September 2017, which will be announced in December
2017.
Following a 20% increase in the value of its portfolio in the
year to 31 March 2017, Circle has again added significant value
with its latest independent valuation showing an 11.3% increase in
the value of its portfolio to GBP103.5 million. This represents an
uplift of 40% since Circle was admitted to AIM in February 2016,
when the portfolio was valued at GBP73.9 million. This increase has
taken NAV per share to more than GBP2, and has been achieved
through the Company's ongoing asset management programme.
Highlights include:
-- Having secured planning permission for a change of use on the
ground floor of Somerset House, Temple Street in Birmingham's CBD
from offices into two higher value A3 restaurants in the first half
of the year, Circle has agreed a 20 year lease with the popular
Latin American restaurant, Las Iguanas, at a rent of GBP220,000 per
annum. Momentum at this asset continues, with the refurbishment of
the upper office floors nearing completion and terms agreed for a
lease on the second ground floor restaurant unit.
-- The remaining refurbished space at Powerhouse in Milton
Keynes has been let to Steven Eagell Limited for 10 years at a rent
of GBP106,256 per annum, equating to GBP16 psf, vs a previous rent
of GBP14.88 psf.
-- The Company has entered into an agreement with Topps Tiles
for a new 10 year lease with a five year break option on 4,700 sq.
ft. at the 37,200 sq. ft. Baildon Bridge at an initial rent of
GBP52,585 pa, vs a previous rent of GBP35,550 pa. This brings
retail occupancy at the park to 91%, with the one vacant unit
remaining under negotiation.
-- At Elizabeth House London Road Staines-upon-Thames, Circle
has renewed a lease to Rina Consulting Ltd for a five year term,
and achieved a new headline rent of GBP20 psf, significantly above
the average passing rent of GBP14.50 psf.
-- At 300 Pavilion Drive in Northampton, Circle has successfully
negotiated the removal of the break clause in Grant Thornton's
three leases of the first and second floors, and accepted its
surrender of a small part of the ground floor. Circle is now
undertaking a refurbishment of the resulting 2,373 sq ft of vacant
space as well as the rest of the ground floor, with interest
already received from a number of parties at an enhanced rent.
In addition, Circle is making significant progress in the
letting of Kents Hill Business Park in Milton Keynes. Following the
strategic decision to divide the remaining space into smaller
units, the majority of the ground floor is now under offer to two
tenants with good interest in the entire first floor from a single
occupier
John Arnold, CEO of Circle Property plc, commented: "This most
recent valuation increase is an important milestone for Circle as
it brings our portfolio value up 40% since IPO, with NAV per share
above the GBP2 mark for the first time. To have achieved such a
significant increase in valuations through active asset management,
rather than through acquisitions or yield compression, is another
strong endorsement of the ability of our team to unlock the value
inherent in our portfolio of regional UK properties.
"Occupancy remains high throughout our investment portfolio,
and, whilst uncertainty continues to surround prime London offices,
we continue to see both value and occupier interest in the regional
market. With a number of new tenants and lease renewals, our
development portfolio continues to perform well, despite a slightly
more challenging letting market, and we are in advanced talks with
a number of occupiers for vacant space throughout the portfolio. In
addition to the good progress made across our investment and
development pipeline, we remain aware of and are actively
considering opportunities to grow our portfolio value through
acquisitions. "
ENDS
For further information please contact:
+44 (0)20 7930
Circle Property plc 8503
John Arnold, CEO
Edward Olins, COO
Peel Hunt (Nominated Advisor to +44 (0) 20 7418
the Group) 8900
Capel Irwin
Edward Fox
+44 (0)20 3727
FTI Consulting 1000
Richard Sunderland
Giles Barrie
Polly Warrack
This information is provided by RNS
The company news service from the London Stock Exchange
END
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