Stobart Group to buy UK property portfolio for £12.35mln
Stobart Group (LON:STOB), the logistics specialist, is to buy 18 properties known as the 'Moneypenny' portfolio for £12.35 million.
It has agreed to buy WADI Properties, which owns 18 freehold and long leashold buildings in the south-east of England.
Stobart also told investors it expected to meet expectations for the year to February 29.
The acquisition will see Stobart take on WADI Properties' bank debt of £88.85 mln. Of that, £74.9 mln is at the fixed rate of 5 per cent with the balance at a floating rate of 1 per cent over 3-month LIBOR. The banking facility will continue after the deal is completed and has a maturity date of April 2017.
The property portfolio is anticipated to generate a return in excess of 10 per cent per annum, including a forecast investment in certain of the properties of up to £13.5 million.
There are also likely to be significant potential tax losses available for use if gains are made on disposals of all or some of the properties, said the firm.
Stobart chairman Rodney Baker-Bates said: "This portfolio will both diversify and strengthen our existing property portfolio" and "will provide positive cash flow" giving "a return above our current cost of capital, and offers substantial capital upside potential".
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