Manganese Bronze rival sells Coventry freehold in £2m deal

A RIVAL to Coventry-based black cab manufacturer Manganese Bronze has disposed of its freehold in the city in a £2m deal.

Eco City Vehicles, which develops and supplies the London-licensed Mercedes Vito taxi, has sold the freehold on Penso Consulting Ltd. The 42,000 sq ft property is an industrial building leased to the company’s subsidiary One80 Ltd and to a third party which converts the Mercedes Vito taxis.
 
ECV will receive a cash consideration of £2m which will be used to repay the company’s mortgage and interest swap – a total of £1.8m. The balance of the proceeds will be applied as working capital.

The firm said the Coventry property was a non-strategic asset which generated annual rent of £220,000, £110,000 of which is from One80, ECV’s technology subsidiary and owner of the intellectual property rights to the rear wheel steer technology used on the Mercedes Vito taxi, which will continue to occupy the property following disposal.
The disposal is not expected to have any operational impact.  

Following the disposal of the property ECV’s long term debt will consist solely of a £1.25m long term loan from the KPM-UK Taxis Discretionary Pension Scheme.

John Swingewood, chairman of ECV, said: “The Coventry disposal further strengthens the Company’s balance sheet following the completion of the share placing in September, leaving us focussed on our core operational business, with no long-term bank debt.”