STOBART GROUP LIMITED
(“Stobart” or the “Group”)
Stobart, the infrastructure and support services group, announces that further to the announcement of 29 March 2016, it has today unconditionally exchanged contracts for the sale of 47 acres of an investment property at Speke in Liverpool, for a cash consideration of £37.0m plus VAT.
The Group’s intention was to hold all of the 53-acre site as an investment property however it was recognised that Ford Motor Company Limited (“Ford”) the tenant required an Option to acquire 47 acres of the site as part of an Agreement to Lease that was signed on 29 March 2016. Ford has today exercised the option to acquire and completion will take place on 31 May 2016.
The part of the site that Ford are acquiring which cost £15.6m, is held on the Group’s balance sheet at £25.2m and generated an annual rental profit of £0.7m. The sale will result in a significant profit of approximately £11.8m for the Group in the current financial year.
The Group will assess its future funding requirements and consider returning surplus cash to shareholders.
Andrew Tinkler, Chief Executive Officer, commented:
“We are very pleased to have realised further value and generated significant profits from our investment property portfolio with a transaction that demonstrates the hidden value within our infrastructure and investment divisions.”