Bourne End Properties has agreed terms for the sale of £28.225m of properties to two companies connected with its former director, Leo Noe’s family trusts.
The cash received will be used to buy back 11,873,333 ordinary Bourne End shares at 60p per share at a cost of £7.124m from the companies associated with Mr Noe’s family trusts and to repay £11.066m of borrowings.
Bourne End’s David Roberts said the share buy-back deal will allow new investors into the company. “Leo Noe’s had nearly 30% shareholding. It was a situation that was causing a bit of a block. His stake is now down to 15% and it will allow new investors into the company.”
The sale is also part of Bourne End’s on-going strategy of reducing its office exposure in favour of shopping cnetres. So far this year, Bourne End has sold and acquired £60m worth of assets. Roberts confirmed that Bourne End was in the market for shopping centres.
The properties, sold by Bourne End, are mainly office buildings including the low-yielding office building in Wigmore Street, London W1, which Bourne End partially occupies as its head office. The Group will continue to occupy the premises on a one-year lease.
EGi News 01/12/97
