Letter of Intent Signed for First Acquisition

RNS Number : 1651G

Dukemount Capital PLC

25 May 2017

 

25 May 2017

Dukemount Capital Plc

("Dukemount" or the "Company")

Binding Letter of Intent Signed for First Acquisition

Dukemount Capital plc, the high yield Real Estate Development Company in the property sector, has signed a binding letter of intent (LOI) for a period of two years whereby Dukemount  and Larch Housing Association Limited (LHA) will identify properties, with a minimum total portfolio value of £5 million and which are suitable for leasing to Supported Living tenants.

Under a 30 day exclusivity period, Dukemount will acquire the identified properties, subject to valuation, due diligence and contract on the basis that LHA agrees to sign a 50 year lease at 6.5% per annum plus CPI based on the purchase price, prior to any firm commitment by Dukemount.

Each property in the portfolio in this deal will be focused on the supported living sector with rents arranged beforehand with the Housing Association and adjusted annually by inflation over the full period of the lease.

This initial deal of £5 million is the first one aimed at filling the pipeline of properties that our institutional contacts are keen to see and fund. As highlighted during the listing process, and in the investor presentation on the company website (www.dukemountcapitalplc.com.), the management team will continue to work to source these transactions to provide product for the long term investing institutions that are so starved of the CPI linked yield they require.

Supported living is a fast-growing concept that was developed in Canada as an alternative to institutional care for people with disabilities and brought to the UK in the 1990's. The main principles of supported living are that people with disabilities own or rent their home, have control over the support they get and how they live their lives.

Dukemount Executive Chairman Geoffrey Dart said, "We have been, and continue to be, approached by a number of housing associations and development providers around the UK and are pleased to announce the signing of the first LOI. The supported living sector is a fast growing sector as more recipients are choosing to have an active place in the community and is one area which ties in with our plan of offering attractive returns to yield seeking institutions and our shareholders whilst also being socially relevant.

For further information, please contact:

Dukemount Capital Plc	Tel: [phone]
Timothy Le Druillenec
Walbrook PR (Media and Investor Enquiries	Tel: [phone]
Paul Cornelius / Gary Middleton	[e-mail]
Optiva Securities Ltd	Tel: [phone]
Christian Dennis - Corporate Broker
Jeremy King - Corporate Broker
Peterhouse Corporate Finance Limited	Tel: [phone]
Lucy Williams/Duncan Vasey

 

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