Property group acquires remaining 50% of joint venture
Property investment, development, car park and hotel operator, Town Centre Securities, (TCS) has completed its acquisition of the remaining interest in its Belgravia Living Group Limited Joint Venture (BLG).
The listed Leeds-headquartered company has now acquired all the remaining ordinary shares in BLG, which was originally set up as a 50/50 Joint Venture between the company and the Highgrove Group in February 2016.
As of 31 December 2022 TCS’s investment in BLG was £6.46m; including rolled up shareholder loan interest this balance has increased to £6.5m immediately prior to this further acquisition.
Following this acquisition, TCS now owns 100% of the issued share capital of BLG and from today the results of BLG will be consolidated as a wholly owned subsidiary of the company.
The net investment made by the business today to acquire the Highgrove Group interest was £3.5m and was funded using existing cash resources within the group.
TCS’s total investment in BLG now equates to £10m. This investment is primarily in the form of a shareholder loan to BLG.
The primary asset within BLG is the Burlington House build-to-rent residential investment at Piccadilly Basin, Manchester which generated a net rental income of £0.92m in the year ended 30 June 2022.
The gross assets of BLG as of 31 December 2022 were £27.7m. BLG has an external debt facility of £14.5m which is secured over the Burlington House asset. This facility is not being refinanced as part of this transaction.
Edward Ziff, TCS chairman and chief executive, said: “Burlington House was our first build to rent development and has performed well.
“We are seeing high levels of occupancy and rental growth, which provides the confidence to acquire the remaining interest in BLG, while seeking further acquisitions and bringing forward development of potential residential projects within our portfolio.”
