21 June 2018
Further to KCR's announcement of its strategic relationship (the "Agreement") with Inland Homes ("Inland") on 31 May 2018, KCR is pleased to announce the first transaction to take place under the terms of the Agreement. KCR has entered into an option agreement to acquire two properties from Inland for a total consideration of £2.56 million payable in KCR shares and/or cash. The acquisition is targeted to proceed on or before 30 June 2018. KCR would be acquiring the entire share capital of the SPV that owns the freehold and long leasehold of the properties. The properties are fully let on effective full repairing and insuring leases and generate an annual income of £133,750, a net yield on consideration of 5.2%.
KCR is also pleased to confirm that, further to the announcement on 3 April 2018, it will be completing the acquisition of 17 apartments in West London for a total consideration of £5.35 million payable in cash on 29 June 2018. This transaction will significantly increase the Company's net asset value per share.
Dominic White, the chief executive of KCR, commented:
"This transaction is a significant step forward for the Company and underlines the commitment of both parties to implement the Agreement that was announced three weeks ago. KCR and Inland are currently at an advanced stage in negotiations for KCR to acquire two further properties in the Inland portfolio and we will update the market on these when appropriate."
|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
+44 7555 159 808
Notes to Editors:
KCR's objective is to build a substantial UK low-to-mid-priced residential property portfolio that generates both secure income flow and increasing net asset value for shareholders. KCR acquires blocks of studio, one-and two-bed apartments that are close to transport links, shopping and leisure.