13 December 2017
KCR Residential REIT plc ("KCR" or the "Company") is pleased to announce that its wholly owned subsidiary, K&C (Osprey) Limited ("Osprey"), has acquired a further apartment within one of its freehold retirement residential developments. The 67-year lease of the apartment was purchased for a consideration of £317,500, excluding costs.
The acquisition was funded via the drawdown of an additional £0.5 million nominal value convertible loan note at par under the instrument utilised for the convertible loan note of £1.35 million, issued on 10 July 2017. In common with that initial tranche, the new loan note attracts interest at a rate of six per cent. per annum, payable quarterly in arrears. The new loan note will be redeemed on 30 June 2020 and can be converted into ordinary shares of 10p in the Company at a price of either £1.20 per share or, in certain circumstances, the price at which the Company places further ordinary shares with investors prior to 30 June 2020.
In line with the previous leasehold acquisitions, the apartment will be refurbished and sold subject to a new 125-year lease such that Osprey retains the freehold interest.
Dominic White, the chief executive of KCR, said: "We reported earlier in 2017 that, since acquiring the freehold Osprey portfolio in May 2016, the asset had outperformed expectations. We have subsequently acquired four leasehold apartments as part of our strategy to improve yield generation and increase value over the long term, and we will seek to make further leasehold acquisitions as opportunities present themselves."
For further information, please contact:
|KCR Residential REIT plc
Dominic White, Chief executive
+44 20 3793 5236
|Arden Partners plc
|+44 20 7614 5917|
|Yellow Jersey PR
|+44 7747 788 221|
Notes to Editors:
KCR's objective is to build a substantial residential property portfolio that generates secure income flow for shareholders through the acquisition of SPVs (Special Purpose Vehicles) with inherent historical capital gains. The Directors intend that the group will acquire, develop and manage residential property assets in key residential areas in the UK.