McCarthy & Stone PLC Sale of assets to Waverstone LLP (5707L)
April 30 2020 - 11:56AM
UK Regulatory
TIDMMCS
RNS Number : 5707L
McCarthy & Stone PLC
30 April 2020
30 April 2020
McCarthy & Stone plc
Sale of assets to Waverstone LLP
Notification of Class 2 Transaction
McCarthy & Stone plc (the "Group"), the UK's leading
developer and manager of retirement communities, today announces
the completion of a portfolio sale of apartments to Waverstone LLP.
The transaction follows an initial sale and lease back of sales
offices and show flats to Waverstone LLP in October 2019.
This second transaction involves the sale of 135 units with a
balance sheet asset value of c.GBP32m for a total consideration of
c.GBP35m. This comprises the sale of 41 show flats and sales
offices with a subsequent 12-month leaseback, and the sale of 94
finished apartments and apartments under construction in Scotland.
The sale of these 94 apartments completes the Group's strategy to
exit its development activity from Scotland.
The Group will receive c.GBP13m cash on completion with the
remaining c.GBP22m balance expected to be paid over the next three
years. The transaction is expected to generate a net profit of
c.GBP3m over a three-year period.
This transaction forms part of the COVID-19 cash optimisation
measures set out within the Group's announcement on 25 March to
ensure that the Group has c.2.5 years of cash cover. The Group
continues to maintain a strong balance sheet and, as at the end of
March, the Group's available cash balance had increased to
c.GBP141m (after drawdown of its GBP200m Revolving Credit
Facility).
Waverstone LLP appointed McCarthy & Stone Management
Services Limited as a sales and managing agent.
Waverstone LLP is a jointly owned entity between Waverley
Investments Limited and McCarthy & Stone Extra Care Living
Limited, where McCarthy & Stone Extra Care Living Limited holds
a non-controlling 49% equity interest. Waverstone LLP was created
to facilitate the purchase, management and disposal of various
assets built by the Group.
-ENDS-
For more information, please contact:
McCarthy & Stone plc
Marina Calero, IR Director
Marina.Calero@mccarthyandstone.co.uk
Powerscourt, 020 7250 1446 /
mccarthy-stone@powerscourt-group.com /
Marina Calero
Justin Griffiths
Nick Dibden
Victoria Heslop
NOTES TO EDITORS:
1. Details of the initial sale transaction to Waverstone LLP (as
per page 48 of FY19 Annual Report):
During 2019, the Group completed the sale of a portfolio of 113
show flats and sales offices to Waverstone LLP and subsequent
leaseback for a maximum of 12 months. Waverstone LLP is an entity
between Waverley Investments Limited and McCarthy & Stone Extra
Care Limited, where McCarthy & Stone Extra Care Living Limited
holds a non-controlling 49% equity interest and therefore has been
treated as an associate in the Group financial statements.
Waverstone LLP was created to facilitate the purchase, management
and disposal of various assets built by the Group. Waverstone LLP
has appointed McCarthy & Stone Management Services Limited a
property manager and a sales agent. The transaction resulted in an
additional FY19 cash flow for the Group of c.GBP17m with the
remaining balance of c.GBP16m expected to be paid over 2 years.
FY19 underlying operating profit for the Group includes c.GBP3m
profit from the transaction, after taking account of unrealised
profit and fair value adjustments in relation to the outstanding
receivable balance.
2. McCarthy & Stone plc
McCarthy & Stone is the UK's leading developer and manager
of retirement communities, with a significant market share. The
Group buys land and then builds, sells and manages high-quality
retirement developments. It has built and sold more than 58,000
properties across more than 1,300 retirement developments since
1977 and is renowned for its focus on the needs of those in later
life.
McCarthy & Stone has two main product ranges - Retirement
Living and Retirement Living PLUS - which provide mainly one and
two-bedroom apartments across the country with varying levels of
support and care for older people. Retirement Living developments
provide independence in private apartments designed specifically
for the over-60s, as well as facilities such as communal lounges
and guest suites that support companionship. Retirement Living PLUS
developments, which are designed specifically for the over-70s,
offer all of this plus more on-site facilities such as restaurants,
well-being suites and function rooms. Importantly, they also
provide on-site flexible care and support packages to assist those
needing additional help.
All developments built since 2010 are managed by the company's
in-house management services team, providing peace of mind that it
will look after customers and their properties over the long term.
This is a key part of how McCarthy & Stone seeks to enrich its
customers' lives. This commitment to quality and customer service
continues to be recognised by residents. In March 2020, the Group
received the full five star rating for customer satisfaction from
the Home Builders Federation for the fifteenth consecutive year -
making it the only UK developer, of any size or type, to achieve
this accolade.
For further information, please visit
www.mccarthyandstone.co.uk
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END
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