KCR Residential REIT PLC Acquisition of leasehold apartment (1499Z)
December 13 2017 - 1:00AM
UK Regulatory
TIDMKCR
RNS Number : 1499Z
KCR Residential REIT PLC
13 December 2017
13 December 2017
KCR Residential REIT plc
Acquisition of leasehold apartment
KCR Residential REIT plc ("KCR" or the "Company") is pleased to
announce that its wholly owned subsidiary, K&C (Osprey) Limited
("Osprey"), has acquired a further apartment within one of its
freehold retirement residential developments. The 67-year lease of
the apartment was purchased for a consideration of GBP317,500,
excluding costs.
The acquisition was funded via the drawdown of an additional
GBP0.5 million nominal value convertible loan note at par under the
instrument utilised for the convertible loan note of GBP1.35
million, issued on 10 July 2017. In common with that initial
tranche, the new loan note attracts interest at a rate of six per
cent. per annum, payable quarterly in arrears. The new loan note
will be redeemed on 30 June 2020 and can be converted into ordinary
shares of 10p in the Company at a price of either GBP1.20 per share
or, in certain circumstances, the price at which the Company places
further ordinary shares with investors prior to 30 June 2020.
In line with the previous leasehold acquisitions, the apartment
will be refurbished and sold subject to a new 125-year lease such
that Osprey retains the freehold interest.
Dominic White, the chief executive of KCR, said: "We reported
earlier in 2017 that, since acquiring the freehold Osprey portfolio
in May 2016, the asset had outperformed expectations. We have
subsequently acquired four leasehold apartments as part of our
strategy to improve yield generation and increase value over the
long term, and we will seek to make further leasehold acquisitions
as opportunities present themselves."
Contacts:
KCR Residential REIT plc info@kandc-reit.co.uk
Dominic White, Chief executive +44 20 3793
5236
Arden Partners plc
William Vandyk
Steve Douglas
+44 20 7614 5917
Yellow Jersey PR +44 7747 788
Charles Goodwin 221
Notes to Editors:
KCR'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 key residential areas in the UK.
This information is provided by RNS
The company news service from the London Stock Exchange
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