RNS Number : 1729G
20 October 2008
20 October 2008
('the Company' or 'the Group')
Option for sale and partial lease back
TG21, the vehicle installation service provider supplying public transport CCTV and other monitoring systems, today announces that it has signed an agreement with Drake Investments Limited ('Drake') under which Drake has the option to purchase the Group's freehold premises in Mitcham, Surrey for £2.7m cash consideration.
Following exercise of the option, the site will be redeveloped and the Group will enter into a lease for a new facility on part of the redeveloped property. The option is subject to Drake obtaining satisfactory planning permission to redevelop the site. The option will lapse after 18 months if the sale has not completed and there are no planning appeals outstanding at that time. It is intended that the net cash generated from the disposal will be applied to repay any remaining bank borrowing secured against the premises with the remainder invested into the Group's public transport solutions business.
Commenting on today's announcement, Peter Ward, Chairman said: 'Since the disposal of much of our distribution division last year we have not fully utilised the office and warehouse space at our Mitcham head office. Consequently the agreement signed today provides us, following completion of the deal, with the opportunity to move our operations to purpose built premises and would release significant capital for re-investment into our fast growing public transport solutions business.'
For enquiries please contact:
Peter Ward, Chairman
Nick Grimond, Chief Executive
Wilson Jennings, Finance Director
TG21 plc Tel: 020 8710 4016
Daniel Stewart & Company plc Tel: 020 7776 6576
Barnaby Fry/Vicky Watkins
Hogarth Partnership Tel: 020 7357 9477
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