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World Careers Netwk. (OLEE)

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Friday 20 January, 2017

World Careers Netwk.

Update regarding WCN's UK head office

RNS Number : 7799U
World Careers Network PLC
20 January 2017
 

20 January 2017

World Careers Network plc

("WCN" or the "Company")

Update regarding WCN's UK head office

Further to the notice of annual general meeting, the Company has been informed that Charles Hipps, the Company's Chairman and Chief Executive Officer and holder of approximately 71.46% of the Company's issued share capital, has acquired, through his self-invested personal pension, the office at 5-7 Bridge Works, 206 Durnsford Road, London SW19 8DR (the "5-7 Bridge Works Building") from an unrelated third party. 5-7 Bridge Works Building together with 3, 6 and 8 Woodman Works,  204 Durnsford Road, London SW19 8DR (the "3, 6 and 8 Woodman Works Buildings") comprises the Company's UK head office. 

The Company's existing lease on the 5-7 Bridge Works Building was for four years and expires on 4 February 2017 and the rent payable under this existing lease agreement is £84,550 pa excluding VAT. 

I.P.M. Personal Pension Trustees Limited is the trustee of Charles Hipps' self-invested personal pension (the "Landlord"). The Company has entered into a new lease agreement with the Landlord in respect of the 5-7 Bridge Works Building (the "Lease Agreement"). Under the Lease Agreement, the lease term is for 10 years from 5 February 2017, with a break clause after 5 years that either the Landlord or WCN can terminate. The rent payable is £95,000 pa excluding VAT, with no rent-free period. The rent has been determined by an independent surveyor acting for WCN. The Lease Agreement contains an upwards only rent review on 5 February 2022. The rent will be reviewed to the higher of existing rent and open market rent. WCN also has the right to terminate the Lease Agreement after 5 years with 18 months' notice in the event that WCN's leases on 3, 6 and 8 Woodman Works Buildings are terminated by the landlord if the landlord exercises its right to redevelop such building.

The Landlord also has the right to terminate on 18 months' notice following the initial 5 year period in the event that the Landlord wishes to redevelop the 5-7 Bridge Works Building.

The existing lease agreement on 3, 6 and 8 Woodman Works Buildings is with the same unrelated third party that sold the 5-7 Bridge Works Building to the Landlord. The lease agreement for 3, 6 and 8 Bridge Works also expires on 5 February 2027, with a break clause after 5 years.   

Under the AIM Rules for Companies, the Landlord is a related party and the entry into the Lease Agreement is a related party transaction.  The Company's directors (other than Charles Hipps), namely David Moore and David Earland, consider, having consulted with Panmure Gordon (UK) Limited, the Company's nominated adviser, that the terms of the Lease Agreement are fair and reasonable insofar as its shareholders are concerned.   

Enquiries

World Careers Network Plc

David Earland, Operations Director,

Telephone: +44 (0)20 8946 9876

Email: [email protected]

 

Panmure Gordon (UK) Limited

Nominated Adviser & Broker

Andrew Potts

Telephone:  +44 (0)20 7886 2500

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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