Leeds Group PLC Related Party Transaction (3128N)
January 28 2016 - 6:56AM
UK Regulatory
TIDMLDSG
RNS Number : 3128N
Leeds Group PLC
28 January 2016
28 January 2016
Leeds Group plc
(the "Company")
Related Party Transaction
Purchase of Freehold Warehousing and Office Facility
Leeds Group plc announces that on 28 January 2016 Hemmers-Itex
Textil Import Export GmbH ("Hemmers"), the Company's German
subsidiary, entered into a binding agreement to purchase the
warehouse and office facility at Twentestrasse 1("the Property")
that it has been renting since 2005.
The Property offers a total of 6,300 square metres of
warehousing and office space constructed on a plot measuring 18,910
square metres. It has been purchased from Mr & Mrs J rg
Hemmers. Mr Hemmers is an Executive Director of the Company and has
been Managing Director of Hemmers since the Company acquired that
business from him in 1999.
Adjoining the Property are two further plots; Hemmers acquired
one of these in 2007 and completed a freehold warehouse extension
in 2008 on it. The second plot was acquired by Hemmers in 2015 and
work is currently underway to construct a further freehold
extension that is expected to be completed in May 2016. The
purchase of Twentestrasse 1 consolidates all three parts of the
facility into the ownership of Hemmers, enabling the Company to
take effective future decisions regarding the site as a whole.
The agreed price of EUR2,700,000 is supported by an independent
professional valuation and will be paid as to:
* Assumption of 2 bank loans secured on the property 1,712,000
* New bank debt secured on the property 500,000
* From existing cash resources 488,000
EUR2,700,000
=============
The principal terms of the bank loans secured on the property
are as follows:
Loan 1 Loan 2 Loan 3
EUR000 EUR000 EUR000
Principal 1,200 512 500
Interest rate 3.40% 2.15% 1.10%
Repayment date 1 March 2020 30 March 2018 12 months after
completion
The annual rental currently paid by Hemmers for the Property is
EUR216,000, which will be saved as a result of the purchase. Net of
interest on loans secured on the Property and tax, the cash benefit
will be approximately EUR133,000 in the first year following
purchase, rising gradually in future years as interest expense
falls in line with loan repayments.
Having consulted with Cairn Financial Advisers LLP, the
Company's Nominated Adviser, the Independent Directors, who do not
include Mr Hemmers since he is involved in the transaction as a
related party, consider that the terms of the transaction are fair
and reasonable insofar as its shareholders are concerned.
Enquiries:
Leeds Group plc
Malcolm Wilson, Company Secretary Tel: 07801 224618
Cairn Financial Advisers LLP
Tony Rawlinson / Avi Robinson Tel: 020 7148 7900
This information is provided by RNS
The company news service from the London Stock Exchange
END
MSCBPMBTMBATBBF
(END) Dow Jones Newswires
January 28, 2016 06:56 ET (11:56 GMT)
Leeds (LSE:LDSG)
Historical Stock Chart
From Apr 2024 to May 2024
Leeds (LSE:LDSG)
Historical Stock Chart
From May 2023 to May 2024