Sale of Legacy Asset: Southern Gateway for £7.25m
11 September 2017
Gresham House plc ("Gresham House" or the "Company")
(AIM: GHE)
Sale of Legacy Asset - Southern Gateway (Speke) for £7.25 million
Gresham House, the specialist asset manager, is pleased to announce that it has exchanged contracts with St. Modwen Developments Limited to sell Southern Gateway, its property in Speke for a gross value of £7.25 million, with completion expected shortly thereafter. Gresham House will use the proceeds of the sale of this inherited legacy asset to repay in full its outstanding loan of £4.4 million with Kleinwort Hambros (formerly Kleinwort Benson), with the balance adding to the net cash balance sheet position, which is intended to support the Company's growth strategy.
In the financial year ended 31 December 2016, Southern Gateway generated net rental income of £0.46 million and was held on the Company's balance sheet at £7.75 million.
Tony Dalwood, CEO of Gresham House, said: "We are pleased to announce the sale of Southern Gateway. This leaves the land at Newton-le-Willows as the only remaining significant legacy asset, having been inherited by the management team in December 2014. This brings the disposal of legacy assets to over £16 million, which is greater than the market capitalisation of the Company prior to this management team's involvement. The disposal adds to the significant cash and liquid assets on the Gresham House balance sheet and we will continue to use this capital to deliver a sustainable, valuable and growing asset management business".
ENDS
For further information, please contact:
Gresham House plc
Anthony (Tony) Dalwood +44 (0) 20 3837 6270
Liberum Capital Ltd
Neil Elliot/Jill Li +44 (0) 20 3100 2000
Montfort Communications:
Gay Collins +44 7798 626282
Rory King +44 203 770 7906
About Gresham House
Incorporated in 1857, Gresham House plc is an AIM quoted specialist asset management group focused on alternative and illiquid assets classes, aiming to generate superior returns for clients and shareholders over the longer term
Shareholder value creation will be driven by long-term growth in earnings as a result of increasing AUM and returns from invested capital
Gresham House currently manages investments and co-investments through its investment management platform on behalf of institutions, family offices, high-net-worth individuals, charities and endowments and private individuals
Note
The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulation ("MAR"). Upon the publication of this announcement via Regulatory Information Service ("RIS"), this inside information is now considered to be in the public domain. If you have any queries on this, then please contact John-Paul Preston, Chief Operating Officer of the Company (responsible for arranging release of this announcement) on +44 (0) 20 3837 6270.
This information is provided by RNS
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