Morgan Sindall Group PLC Morgan Sindall increases investment in ISIS (7448R)
November 22 2012 - 2:00AM
UK Regulatory
TIDMMGNS
RNS Number : 7448R
Morgan Sindall Group PLC
22 November 2012
22 November 2012
Morgan Sindall increases investment in ISIS Waterside
Regeneration
Morgan Sindall Group plc announces that its Urban Regeneration
division, Muse Developments Limited ('Muse'), has increased its
effective participation in the ISIS Waterside Regeneration Limited
Partnership ('ISIS') to 50% from 25%. ISIS undertakes regeneration
of waterside sites in the UK and this announcement demonstrates
Muse's ongoing commitment to the regeneration of waterside
locations in the UK's main cities, and the Group's continuing focus
on growing its regeneration business.
ISIS is a joint venture between the Canal & River Trust and
the investment vehicle Warp 4 Limited Partnership ('Warp 4'). Muse
has acquired the remaining 50% interest in Warp 4 from Igloo
Regeneration Property Unit Trust ("Igloo"), part of the Igloo
Regeneration Fund group, an Aviva Investors Fund, with the result
that Warp 4 is now wholly-owned by Muse.
The consideration for Igloo's interest in Warp 4 is GBP20.5m
payable in cash by Muse in installments over the period July 2013
to July 2017. Seventy per cent of the consideration is not payable
until 2016/17. In addition in July 2017 Igloo may receive a share
of the profit in Warp 4 arising from the development of one of the
ISIS sites. Igloo is entitled to a twenty percent share of net
profit in Warp 4 from the development of the site in excess of
GBP17.5m subject to a cap on any such payment of GBP20m. Muse does
not expect the profit to exceed current projections by such an
amount as to trigger this profit share payment to Igloo.
At 31 December 2011, Warp 4 had net assets of GBP35m and
incurred a loss of GBP2m in that financial year from its investment
in ISIS. The losses generated are expected to reduce significantly
in 2012 and 2013 and Warp 4 is forecast to generate profit from
2014 onwards as the ISIS investment in new development projects
begins to generate returns. The deferred payment terms agreed for
the acquisition are expected, when balanced against anticipated
distributions receivable from ISIS, to result in a broadly cash
neutral position for the Group in the short term, with more
significant medium-term benefits as its investment in new
development projects begins to generate returns.
John Morgan, Chief Executive, commented "We are pleased to have
acquired Igloo's 50% interest in Warp 4. This acquisition
demonstrates our commitment to the regeneration of waterside
locations in the UK's main cities, and underlines the Group's
continuing focus on growing the regeneration business."
- ends -
NOTES TO EDITORS:
About ISIS Waterside Regeneration Limited Partnership
('ISIS')
ISIS is a joint venture between Warp 4 and the Canal & River
Trust (formerly British Waterways) set up to undertake regeneration
of waterside sites. Current locations include Manchester, Leeds,
Brentford, Glasgow, Nottingham and Birmingham.
About Warp 4 Limited Partnership
Warp 4 Limited Partnership was established in 2002, as a 50:50
joint venture between Muse Developments and Igloo Regeneration
Property Unit Trust, a fund controlled by Aviva, to invest solely
in the ISIS Waterside Regeneration Limited Partnership.
About Igloo Regeneration Partnership
The Igloo Regeneration Partnership was established by Aviva
Investors in 2002 to invest in urban development projects in the
top 20 cities in the UK. Igloo follows a market leading Sustainable
Investment Policy called Footprint(TM) and was credited by the
United Nations as the world's first responsible property investment
fund
About Muse Developments Limited ('Muse')
Muse is a UK-wide urban regeneration business specialising in
the delivery of complex mixed-use development projects,
predominantly in town and city centre locations. Muse has a
portfolio of around 30 projects, the majority of which are
delivered in partnership with public and private sector
landowners.
About Morgan Sindall Group plc
Morgan Sindall Group plc is a leading UK construction and
regeneration group with revenue of over GBP2 billion and which
operates through five divisions of construction and infrastructure,
affordable housing, fit out, urban regeneration and
investments.
ENQUIRIES:
Morgan Sindall Group plc Tel: 0207 307 9200
John Morgan, Chief Executive
David Mulligan, Finance Director
Brunswick Tel: 0207 404 5959
Nick Cosgrove
Alison Kay
This information is provided by RNS
The company news service from the London Stock Exchange
END
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