K&C REIT has announced that it has completed the purchase of ‘The Osprey Management Company Limited’, from Ms Susan Hards, for an aggregate consideration valued at £1.6m. The company says that Osprey owns a portfolio of freehold interests in what it describes as, “a number of high quality retirement and residential properties in and around London and southern England”. The purchase consideration was met through the payment of £1.3m in cash and the issuance to the vendor of three million ordinary shares in the Company.
The company says that funding for the Acquisition was provided by a combination of a new external debt facility of approximately £1.1m, from Ravensale Ltd, £130k from the Company’s existing bank facility and £70k from the Company’s own cash resources. The company also says that the new external debt facility, which is subject to interest-only quarterly payments during its two-year term, carries an interest rate of 12% and is secured on K&C’s shares in Osprey and Osprey’s key freehold properties. The Company says that it considered a number of alternatives to the new external debt facility and set up a standby facility in the event that the New Facility would not be concluded in time. As part of the arrangements, for ensuring the availability of this standby financing, the provider has been granted 1.5m warrants exercisable at 10 pence per share for a period of five years.
The company says that, following the allotment of the new shares the Company’s issued share capital will consist of 46,785,623 ordinary shares, none of which are held in treasury.
K&C REIT completes the purchase of Osprey : KCR