Grafton Group PLC
24 August 2000
STG£15 MILLION LONDON SITE SALE AGREEMENT
Grafton Group plc announces that it has signed contracts to sell a 3.3 acre
site, known as Orchard Wharf, in London's Dockland for a net consideration of
STG£15.0 million (EURO24.9 million). The site was an asset of British
Dredging plc which was acquired by Grafton in 1998.
Orchard Wharf is stated in Grafton's accounts at a book value of STG£4.5
million (EURO7.5 million). After costs and provisions of STG£1.0 million
(EURO1.7 million), the profit arising from the sale is estimated at STG£9.5
million (EURO15.8 million), before tax, subject to completion at the end of
October.
The site is located in Canning Town close to London City Airport and opposite
the Millennium Dome, and is surplus to Grafton's requirements. It was at one
time used by British Dredging as a wharf for landing sand and gravel. More
recently, it was rented for approx STG£65,000 (EURO108,000) per annum.
An EGM proposal in 1998 by the British Dredging Board to dispose of the site
for STG£3.5 million (EURO5.8 million) prior to being acquired by Grafton was
opposed and defeated by Grafton as a minority shareholder at that time.
Grafton has contracted to sell the property to a London based property
development company, Big Orchard Limited. The transaction will take the form
of a sale of the original British Dredging plc, which has changed its name to
BD Estates (1999) plc (BD), to Big Orchard. The total consideration, to
include cash of STG£8.0 million (EURO13.3 million) in BD's Balance Sheet,
amounts to STG£23.0 million (EURO38.2 million). The book value of the net
assets of BD at completion is anticipated to be STG£12.5 million (EURO20.7
million).
The net proceeds from this transaction will be used to supplement Grafton's
strong cashflow in continuing the expansion of its business.
For Reference: 24 August 2000
Michael Chadwick Joe Murray
Executive Chairman Murray Consultants
Grafton Group plc Telephone: ++(353)(01)632 6400
Telephone: ++(353)(01)216 0600
Colm O Nuallain Ginny Pulbrook
Finance Director Citigate Dewe Rogerson
Grafton Group plc Telephone: ++(44)(0207)282 2945
Telephone: ++(353)(01)216 0600
This statement is also available on our web site www.graftonplc.com
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