KCR Residential REIT PLC Exchange of contracts to acquire 17 apartments (5365J)
April 03 2018 - 1:01AM
UK Regulatory
TIDMKCR
RNS Number : 5365J
KCR Residential REIT PLC
03 April 2018
This announcement contains information which, prior to its
disclosure, was inside information for the purpose of the Market
Abuse Regulation
3 April 2018
KCR Residential REIT plc
Exchange of binding contracts to acquire 17 apartments in West
London
Highlights
-- Total consideration of GBP5.35 million
-- Gross annual yield on consideration of 4.8 per cent
-- Transaction will significantly increase Net Asset Value ("NAV") per share.
KCR Residential REIT plc ("KCR" or the "Company") is pleased to
announce that it has exchanged binding contracts to acquire three
freehold blocks containing 16 studio, one- and two-bedroom
apartments in Ladbroke Grove and a two-bedroom apartment in Harrow
for a total consideration of GBP5.35 million excluding costs,
payable in cash. KCR is acquiring the entire share capital of the
SPV that owns the freehold properties. The transaction is
contracted to complete no later than 29 June 2018.
The apartments are fully let to private tenants. The total
rental income is over GBP0.25 million, generating a gross annual
yield on consideration of 4.8 per cent. The average unit value of
the acquired properties is GBP314,700 and average monthly rent is
approximately GBP1,250 (GBP32 per sq. ft. per annum).
There is strong demand from tenants in this area (in particular
in the lower rental price bracket in which KCR focuses) with a
limited supply of such properties, as many are being converted back
to single family homes.
This transaction is in line with KCR's acquisition strategy:
-- blocks of studio, one- and two-bed apartments
-- lower rental price bracket where there is high tenant demand
-- generating immediate income
-- close to transport and shopping / leisure facilities
-- asset management potential to enhance rental and capital values
-- focus on acquiring SPVs that own property to realise benefits
afforded to REIT structures.
Dominic White, Chief Executive of KCR, said: "This is a highly
accretive transaction for KCR that has a significant positive
impact on revenue. We estimate that NAV per share will increase by
more than 20 per cent as a result of the acquisition.
We are currently working on a number of similar acquisitions in
the south and south-east of the UK that would mark a step-change in
the size and growth of KCR. We will update the market when
appropriate."
Contacts:
KCR Residential REIT plc info@kcrreit.com
Dominic White, Chief executive +44 20 3793
5236
Arden Partners plc
Steve Douglas +44 20 7614 5917
Notes to Editors:
KCR's objective is to build a substantial UK residential
property portfolio that generates both secure income flow and
increasing net asset value for shareholders. KCR acquires blocks of
studio, one- and two-bed apartments that are close to transport
links, shopping and leisure. As a Real Estate Investment Trust, KCR
predominantly acquires buildings owned by Special Purpose Vehicles
("SPVs") with inherent historical capital gains since this
acquisition structure can often deliver tax advantages to the REIT
and its shareholders.
This information is provided by RNS
The company news service from the London Stock Exchange
END
CNTDGGDSCSGBGID
(END) Dow Jones Newswires
April 03, 2018 02:01 ET (06:01 GMT)
Kcr Residential Reit (LSE:KCR)
Historical Stock Chart
From Apr 2024 to May 2024
Kcr Residential Reit (LSE:KCR)
Historical Stock Chart
From May 2023 to May 2024