20 January 2025
LEI: 213800BMY95CP6CYXK69
ALPHA REAL TRUST LIMITED
("ALPHA REAL TRUST" OR THE "COMPANY")
ACQUISITION OF FIVE
CREMATORIA IN ENGLAND WITH A CONDITIONAL EXCHANGE ON A SIXTH
ASSET
Alpha Real Trust announces it has
acquired a portfolio of five crematoria in England for £34.2m. The
portfolio is leased to subsidiaries of Dignity Group Holdings
Limited ("Dignity") who are one of the leading providers of funeral
related services in the UK with a market leading position. Dignity
will continue to operate the crematoria under the long term leases.
The five identical leases are for a 40 year term with a tenant
option for an additional 20 years. The aggregate commencing rent is
£2.5m p.a. and will be linked to inflation. Alpha Real Trust has
acquired the assets using existing cash reserves as well as a loan
equivalent to c.65% of the acquisition price. Alpha Real Trust has
also conditionally exchanged on a sixth crematorium for
consideration of £8.8m let on the same terms with a longstop date
for the purchase of the 31 March 2025.
Dignity are using the funds raised
by the sale and lease back to pay down existing unsecured
debt.
This acquisition offers the Company
the potential to benefit from a long term, predictable,
inflation-linked income stream whilst contributing additional
diversification to Alpha Real Trust's portfolio. In addition, the
investment offers the potential for associated capital growth. The
Company remains focused on asset-backed lending, debt investments
and high return property investments in Western Europe that are
capable of delivering strong risk adjusted cash flows.
Alpha Real Trust is delighted to be
partnering with Dignity as an accomplished and experienced
crematoria operator in the UK market and look forward to growing
the business together.
Dignity were represented by KLM Real
Estate, Hogan Lovells and DLA Piper, Alpha Real Trust by Augur
Group and Penningtons Manches Cooper.
For further information please
contact:
Alpha Real Trust Limited
William Simpson, Chairman, Alpha Real
Trust
+44 (0) 1481 231 100
Brad Bauman, Joint Fund Manager,
Alpha Real Trust +44 (0) 20 7391
4700
Panmure Liberum, Broker to the Company
Atholl
Tweedie
+44 (0) 20 7886 2500