Circle Property PLC Repayment of Debt Facility (8583P)
June 22 2022 - 10:43AM
UK Regulatory
TIDMCRC
RNS Number : 8583P
Circle Property PLC
22 June 2022
22 June 2022
Circle Property Plc
("Circle", the "Company" or the "Group")
Repayment of Debt Facility
Circle Property Plc (AIM: CRC), which invests in, develops and
actively manages well-located regional office assets, is pleased to
announce the following update in relation to its reduction in
gearing and debt facility.
The Company has a financing facility in place with RBS and HSBC
for GBP100 million. The senior revolving facility is for GBP60
million with an "accordion" option for a further GBP40 million (of
which the Company had drawn GBP62.3 million) (the "Facility").
Following the disposal of Kents Hill Park Conference Centre
which completed in March 2022 , the Board resolved to utilise 50
per cent. of the proceeds to reduce debt, leaving an outstanding
amount under the Company's facility of approximately GBP21.4
million equating to an LTV of 29.4 per cent. Moreover, on 26 May
2022, the Company disposed of 720 Aztec West in Bristol for a
consideration of GBP2.52 million, the net proceeds of which were
utilised to further reduce the Facility to GBP19.16 million.
The Company now announces that as at 22 June 2022, it has repaid
the amount outstanding under the Facility of GBP19.16 million in
full and has subsequently cancelled the Facility, leaving the Group
with a cash balance of approximately GBP5.06 million as at 22 June
2022 and no debt.
The Company continues to make targeted asset sales in an orderly
manner over a period of two to three years (if not sooner) in line
with its recently updated strategy. Notwithstanding this disposals'
programme, the team continues to actively manage the portfolio to
achieve lettings at estimated rental values and will complete
scheduled developments including at K3 Kents Hill, Milton Keynes
(scheduled for completion in Autumn 2022) as well as other
refurbishments and fit-outs as appropriate.
The Board remains committed to maximising returns and delivering
value to Shareholders, and as such, the Board will evaluate and
determine returns of capital to Shareholders using a combination of
existing cash resources and the proceeds of any future asset sales.
The Board expects that a minimum of two returns of capital will be
made to Shareholders, the first of which is expected to occur by
March 2023.
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the UK version of the EU Market Abuse Regulation (2014/596) which
is part of UK law by virtue of the European Union (Withdrawal) Act
2018, as amended and supplemented from time to time.
+44 (0)20 7930
Circle Property Plc 8503
John Arnold, CEO
Edward Olins, COO
+44 (0)20 7397
Cenkos Securities plc 8900
Katy Birkin
Mark Connelly
Radnor Capital
Joshua Cryer +44 (0)20 3897
Iain Daly 1830
+44 (0)20 3757
Camarco 4992
Ginny Pulbrook
Toby Strong
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END
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June 22, 2022 11:43 ET (15:43 GMT)
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