The Company announces that it has exchanged unconditional contracts with a wholly owned subsidiary of Barratt Developments PLC (‘Barratt’) to dispose of its remaining, non-income producing site at the Olympic Office Center in Wembley for £15.25 million (approx. €19 million). Barratt have paid a 10% deposit and completion is due on 23 September 2014.
The Company estimates that completion of the disposal will increase the underlying pro-forma Net Asset Value (‘NAV’) of the Company, assuming no other changes following the last reported NAV as at 30 June 2014, by approximately 3.5%.
The disposal is the successful conclusion of a strategy for the subject site involving securing outline planning consent for change of use from a car park to 227,000 ft² (approx. 21.088 m²) of residential and ancillary uses. Proceeds will be redeployed into income producing investments that are currently under consideration.
Following completion of the disposal of the subject site the Company continues to own the 74,000 ft² (6.874 m²) Olympic Office Centre which as at 30 June 2014 was independently valued at £10.75 million (€13.5 million).