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Circle Property sells Milton Keynes business park and progresses on sales in Birmingham and Staines

Circle Property sells Milton Keynes business park and progresses on sales in Birmingham and Staines – Circle Property (CRC) has exchanged contracts on the sale of Kents Hill Business Park in Milton Keynes comprising approximately 80,576 sq ft of office accommodation to Corum XL c/o Corum Asset Management, at a combined sale price of £17.23m, an increase of 10.1% on the 31 March 2022 valuation of £15.65m.

The sale of buildings K1 and K2 completed simultaneously on exchange at £12.73m while completion of the sale of building K3, for £4.5m, is expected to take place prior to the end of the calendar year, following the completion of the refurbishment currently underway.

CRC bought Kents Hill in December 2013 for approximately £11m and the profit before tax for the year ended 31 March 2022 attributable to Kents Hill was just over £500,000.

Meanwhile, CRC has also exchanged contracts on the sales of Cheltenham House in Birmingham, comprising approximately 16,469 sq ft of office and restaurant accommodation to A S Leisure Properties Limited, for £4.7m, and Elizabeth House in Staines comprising approximately 14,829 sq ft of office accommodation to MAP Commercial Properties Limited for £3.5m. The sale prices represent a decrease of 9.6% and an increase of 16.7%  on the 31 March 2022 valuations of £5.2m and £3m, respectively. Completion is expected for both next month.

As previously announced, in June 2022, CRC repaid the amount outstanding under its debt facility in full and is now debt free. The net proceeds from the disposals will be held as group cash and the board expects that a minimum of two returns of capital will be made to shareholders, the first of which is expected to occur by March 2023. Following completion of the sale of Kents Hill K1 and K2, the company’s net cash balance is approximately £16.5m.

CRC : Circle Property sells Milton Keynes business park and progresses on sales in Birmingham and Staines

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