Motorpoint Group plc Smaller Related Party Transactions (1718K)
July 05 2017 - 3:32AM
UK Regulatory
TIDMMOTR
RNS Number : 1718K
Motorpoint Group plc
05 July 2017
5 July 2017
Motorpoint Group plc
("Motorpoint" or the "Group")
Smaller Related Party Transactions
Motorpoint Group plc, the UK's largest independent vehicle
retailer announces that the Group has agreed to vary the terms of
its leases from Shoby Properties Limited (a related party of David
Shelton who is a major shareholder of Motorpoint) in respect of its
Derby, Birmingham and Burnley sites.
The Birmingham site is currently held on a lease to 2028, with
upward only rent reviews to market rental value. Agreement has been
reached to extend this lease to 2033, with an option to renew the
lease for an additional 10 years, with rent reviews linked to RPI
with a cap and collar arrangement limiting this to between 1% and
3% p.a.
The Burnley site is currently held on two leases to 2031, with
upward only rent reviews to market rental value. Agreement has been
reached to extend this lease to 2037, with an option to renew the
lease for an additional 10 years, with rent reviews linked to RPI
with a cap and collar arrangement limiting this to between 1% and
3% p.a. In addition, Shoby Investments has removed a reinstatement
provision regarding a former building on the site that was
demolished during Motorpoint's development of the site. This
removes a potential future financial liability for Motorpoint.
Agreement has also been reached to vary the lease for the Derby
compound providing Motorpoint with a right of pre-emption. The
right is to purchase the property in the event the landlord wishes
to make a disposal of it on or before 14 September 2028.
No consideration was paid to David Shelton or Shoby Properties
Limited for entering into the variations in these leases as
described above.
The variations have been approved by a committee of Independent
Directors in accordance with the Relationship Agreement between,
inter alia, (1) Motorpoint and (2) David Shelton dated 13 May 2016,
having been considered to be promoting the interests of the
Group.
These transactions fall within Listing Rule 11.1.10R and this
announcement is made in accordance with Listing Rule
11.1.10R(c).
Enquiries:
Motorpoint Group plc Via FTI Consulting
Mark Carpenter, Chief
Executive Officer
James Gilmour, Chief Financial
Officer
FTI Consulting (Financial
PR)
Jonathon Brill
Alex Beagley
James Styles 020 3727 1000
Notes to editors
Motorpoint is the largest independent vehicle retailer in the
United Kingdom. The Group's principal business is the sale of
nearly-new vehicles, the majority of which are up to two years old
and which have covered less than 15,000 miles. Motorpoint sells
vehicles from brands representing over 95 per cent. of new vehicle
sales in the United Kingdom, with models from Ford, Vauxhall,
Volkswagen, Nissan, Hyundai, Audi and BMW being amongst the top
sellers. The Group operates from 12 retail sites across the United
Kingdom; Derby, Burnley, Glasgow, Newport, Peterborough, Chingford,
Birmingham, Widnes, Birtley, Castleford, Oldbury and Sheffield, of
which seven have opened in the last five years; together with a
national contact-centre dealing with online enquiries.
More information is available at www.motorpointplc.com and
www.motorpoint.co.uk
This information is provided by RNS
The company news service from the London Stock Exchange
END
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