Stobart sells 5% stake to Woodford
STOBART, the listed Cheshire and Cumbria-based property investment company has sold a 5% stake in the business to top investment firm Woodford Asset Management to fund the purchase of land in Speke, Liverpool.
The placing of 16.4m shares at 110p per share to existing investor Woodford, will raise £18m before expenses and will allow Stobart to buy the investment property assets spanning 53 acres, which it currently leases, in Speke.
The deal involves two parcels of land. One, which is presently sub-let to a tenant for storage purposes, is being acquired from the receivers to Towerbeg for £14.5m in cash. The other deal, for £2.25m, is for the freehold to an adjoining site, which is also used for storage.
Stobart said the purchase of the sites will save it annual rental payments of £750,000.
It added: “One option would be for the group to extend and improve the lease terms with the tenant and discussions with the tenant are at an advanced stage. The long leasehold element, comprising six acres of the 53 acre site, is not used by the tenant and will remain available to the group for other uses. These arrangements release the group from a potentially onerous lease liability and are expected to create additional value for the group on revaluation of the properties.”
Chief executive Andrew Tinkler added: “We are pleased to have been able to take advantage of the opportunity at Speke as part of our strategy of managing our assets and maximising the value of our property investments. We expect the transaction to improve the site and generate value for our shareholders.”
