(WICH.L) Wichford PLC Buy/Sell

RNS Number : 1834H
  Wichford plc
  16 February 2010
   

Wichford P.L.C.

("Wichford" or the "Company")

Interim Management Statement

16 February 2010

The Board of Wichford P.L.C., the property investment company, issues the following Interim Management Statement relating to the period ended 16 February 2010.

Property Portfolio

Acquisitions

The acquisitions of the Crescent Centre, Bristol and the two Driving Standards Agency ("DSA") Driving Centres in Uxbridge and Gillingham were previously announced on 20 January 2010.  

Crescent Centre, Bristol

The Crescent Centre, Temple Back, Bristol was acquired from Henderson Global Investors for £14,000,000 reflecting a net initial yield of 7.89%. The property has 4,058 sq ft of space vacant and available to let with 1,622 sq ft now under offer. 

DSA Driving Centres, Uxbridge and Gillingham

Further to the acquisition announcement on 20 January 2010, Gillingham completed on 29 January 2010. Uxbridge is expected to reach practical completion before the end of May 2010. 

Gillingham and Uxbridge are both let on forty year leases to the Driving Standards Agency with tenant break options in year 15 and 20 respectively. The total acquisition price of £9,337,000 reflects a blended net initial yield of 5.92%.

All three acquisitions will form part of the Core portfolio as their weighted average unexpired lease terms are in excess of seven years. 

Lettings & Occupancy

The portfolio's occupancy rate remained above 99% as at the date of the announcement. 

At the Crescent Centre, Bristol, heads of terms have been agreed with an existing tenant for letting an additional 1,622 sq ft for five years subject to three months rent free as well as a five year lease extension on 1,632 sq ft of space (on existing terms). Heads of terms have also been agreed for a direct lease with an existing sub-tenant for a further two years. Securing these lettings and lease extensions will be a positive step toward enhancing the value and cash flow of this recently acquired property.  

A new 13 year lease with a break option in March 2018 has been agreed with Trillium Prime Properties at Newington Causeway, London extending the unexpired lease term by 7.3 years. The lease is subject to a 27 month rent free period. 

It has been agreed that tenant break clauses at Hartlepool (November 2011) and Billingham (February 2011) are to be removed and replaced with break options in March 2018 extending the unexpired lease terms of these properties by 6.4 and 7.1 years respectively and moving these properties into the Core portfolio. The extensions are subject to capital contributions equivalent to 24 months rent.

Cash Position

As at the date of the announcement, and after allowing for the final dividend payment, the Company had approximately £57.0 million available for acquisitions in addition to those detailed above, comprising available cash balances and cash on deposit to be released following the completion of various substitutions. 

Debt Facilities Update  

Wichford has made good progress with regard to its debt facilities in the period under review.

Delta and Gamma Facilities

As part of the overall strategy to increase the WAULT, the Crescent Centre, Bristol has been pledged to the Zeta facility releasing funds held as collateral from properties that were sold and the three properties (St Helens, Watford and Redcar) that were released from the Zeta facility and are in the process of being substituted into the Gamma and Delta facilities.

It is intended that Gillingham and Uxbridge (subject to practical completion) will be pledged to the Delta facility as substitute properties which will assist in raising the WAULT of this facility. 

The Company is in negotiations on a number of acquisitions of properties with long-dated leases. Further acquisitions will be announced as and when they complete.  

VBG1

As previously announced on 1 February 2010, two of the Company's German subsidiaries have entered into a standstill agreement until Friday 19 March 2010 with the Servicer of the VBG1 Loan. The Company remains confident that an agreement which is beneficial to both the Lender and Borrower can be achieved.

Board Appointments

As previously announced on 12 February 2010, Mark Sheardown has been appointed as Non-executive Director to the Board of Wichford P.L.C. Mark has over thirty years of experience in real estate covering property development and investment into real estate occupied by government-backed entities, primarily the NHS funded primary health care sector. He is a Fellow of the Royal Institution of Chartered Surveyors.  

Overhead Costs

The program of re-tendering and re-negotiating existing service contracts has made substantial progress since the financial year end. Following negotiations with all key advisers and service providers, the Company is positive that the targeted reduction in ongoing overheads of £750,000 p.a. will be achieved. The reduction in the management fee has been implemented from 1 October generating a saving of approximately £500,000 p.a.

Dividend

The Company's shares went ex-dividend on 3 February 2010. The final dividend of 0.31 pence per share will be payable on 1 March 2010.

Outlook

The number of investment opportunities has improved in the last quarter, however the market remains highly competitive for long-dated secure income streams including government let property, as demonstrated by the evidence of prime yields hardening. As a result of the positive yield shift, the Directors believe that the value of the Company's UK portfolio has increased since last reported. 

The Company's immediate focus remains securing appropriate long-dated leases to enable the extension of the Delta and Gamma facilities and resolution of the VBG1 facility negotiations. 

Philippe de Nicolay, Chairman of Wichford commented:

"Wichford continues to make steady progress with its property portfolio and debt facilities. We are investing the proceeds of the rights issue and property sales into new properties that will assist us with the WAULT and the extension of our major UK debt facilities. There are an increasing number of opportunities in the market and, although competition is increasing, we have already shown this year that we are able to add new income streams to our high-quality portfolio." 

For further details, please contact, 

 Wichford P.L.C.
 Philippe de Nicolay               00 33 1 40 74 42 79

 Wichford Property Management Ltd
 Michael Watters                   020 7811 0100
 Philip Cooper                     020 7495 7111
 Stephen Oakenfull                 020 7811 0100

 Citigate Dewe Rogerson            020 7638 9571
 George Cazenove
 Kate Lehane

Wichford P.L.C. (UK Listed: WICH) is a property investment company, with a portfolio focused on investment property occupied exclusively by Central and State Government bodies. Approximately a quarter of the portfolio comprises public sector rented properties in France, Germany and the Netherlands.

This information is provided by RNS
The company news service from the London Stock Exchange
 
  END 
 
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RNS Number : 0504H Wichford plc 12 February 2010

Wichford P.L.C.

("Wichford" or the "Company")

Appointment of Director

12 February 2010

Wichford P.L.C., the property investment company, is pleased to announce the appointment of Mark Sheardown to the Company's Board as a Non-Executive Director on 11 February 2010.

At the time of announcing the Rights Issue, the Company identified the need to enhance the Board's existing real estate expertise. This appointment follows an extensive search by the Nominations Committee with advice from a search consultant.

Mark Sheardown (55 years old), a Fellow of the Royal Institution of Chartered Surveyors, has over 30 years of entrepreneurial and successful real estate experience covering property development and investment into real estate occupied by government-backed entities, primarily the NHS funded primary health care sector. In 1982 he formed City & Urban Securities, which has completed in excess of 30 retail and commercial development schemes. He is currently a director of General Practice Group where he has overseen the growth of the Company to its current position as a market leader in the sector having developed and purchased over £250m worth of healthcare assets.

Philippe de Nicolay, Non-executive Chairman of Wichford, commented:

"I am delighted to welcome Mark to the Board. Mark will join the Board and our Investment Committee, where we look forward to the substantial contribution which he will bring. His expertise will enhance the Board's direct property experience and strengthen the Company's ability to leverage value from the existing portfolio."

For further details, please contact,

Wichford P.L.C.
Philippe de Nicolay 00 33 1 40 74 42 79

Wichford Property Management Ltd
Michael Watters 020 7811 0100
Philip Cooper 020 7495 7111
Stephen Oakenfull 020 7811 0100
Citigate Dewe Rogerson 020 7638 9571

George Cazenove Kate Lehane

Wichford P.L.C. (UK Listed: WICH) is a property investment company, with a portfolio focused on investment property occupied exclusively by Central and State Government bodies. Approximately a quarter of the portfolio comprises public sector rented properties in France, Germany and the Netherlands.

Notes:

Mark is currently director of General Practice Group Limited, General Practice Facilities Management Limited, General Practice Investment Corporation Limited, PFPC Limited, General Practice Group Scotland Limited, GPGL Limited, GPG No. 1 Limited, GPG No. 2 Limited, GPG No. 3 Limited, GPG No.4 Limited, GPG Scotland No. 1 Limited, GPG Lothian No. 2 Ltd, GPI Nominee Ltd, City & Urban Securities Ltd.

Mark was previously director of Harambat Limited (2004 - 2005).

There are no other matters which require to be disclosed pursuant to Listing Rule 9.6.13.

This information is provided by RNS The company news service from the London Stock Exchange

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RNS Number : 9791G Wichford plc 10 February 2010

TR-1: NOTIFICATION OF MAJOR INTEREST IN SHARESi

1. Identity of the issuer or the underlying issuer of existing shares to which voting rights are attached: ii
WICHFORD P.L.C.
2 Reason for the notification (please tick the appropriate box or boxes):
An acquisition or disposal of voting rights

An acquisition or disposal of qualifying financial instruments which may result in the acquisition of shares already issued to which voting rights are attached

An acquisition or disposal of instruments with similar economic effect to qualifying financial instruments

An event changing the breakdown of voting rights

Other (please specify):

NO

3. Full name of person(s) subject to the

notification obligation: iii

4. Full name of shareholder(s)

(if different from 3.):iv

5. Date of the transaction and date on

which the threshold is crossed or reached: v

6. Date on which issuer notified:

7. Threshold(s) that is/are crossed or

reached: vi, vii
20%

8. Notified details: A: Voting rights attached to sharesviii, ix
Class/type of Situation previous Resulting situation after the triggering transaction
shares to the triggering
transaction

if possible using the ISIN CODE

Number Number Number Number of voting % of voting rightsx
of of of shares rights
Shares Voting
Rights
Direct Directxi Indirectxii Direct Indirect
204272000 204272000 213172000 213172000 N/A 20.07% N/A

B: Qualifying Financial Instruments Resulting situation after the triggering transaction
Type of financial Expiration Exercise/ Number of voting % of voting
instrument datexiii Conversion Periodxiv rights that may be rights
acquired if the
instrument is
exercised/ converted.

C: Financial Instruments with similar economic effect to Qualifying Financial Instrumentsxv, xvi Resulting situation after the triggering transaction
Type of financial Exercise price Expiration datexvii Exercise/ Number of voting rights instrument refers to % of voting rightsxix, xx
instrument Conversion periodxviii
Nominal Delta

Total (A+B+C)
Number of voting rights Percentage of voting rights
213 172 000 20.07%

9. Chain of controlled undertakings through which the voting rights and/or the financial instruments are effectively held, if applicable:xxi

Proxy Voting:
10. Name of the proxy holder: N/A
11. Number of voting rights proxy holder will cease N/A

to hold:
12. Date on which proxy holder will cease to hold N/A

voting rights:

13. Additional information:
14. Contact name: Anne Couper Woods, Company Secretary
15. Contact telephone number: 01624 689 589

This information is provided by RNS The company news service from the London Stock Exchange

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RNS Number : 3887G Wichford plc 01 February 2010

Wichford P.L.C.

("Wichford" or the "Company")

VBG1 Standstill Agreement

1 February 2010

Wichford's 2009 Annual Report referred to ongoing negotiations in relation to the maturity of the VBG1 facility which had a final maturity date of January 2010. The Board of Wichford P.L.C., the property investment company, issues the following update on negotiations in connection with the maturity of the EUR69.02m VBG1 Facility within two of its German subsidiaries.

The Borrowers have entered into a standstill agreement with the Servicer until 19 March 2010. The Company has previously indicated during the course of 2009 that it had various options available to it with respect to this facility and a standstill agreement is in line with this position. A number of proposals have been submitted to the Servicer with regard to restructuring the loan and the Company and the Servicer are confident that an agreement, which is beneficial to both the Borrowers and the Lender, can be reached.

For further details, please contact,

Wichford P.L.C.
Philippe de Nicolay 00 33 1 40 74 42 79

Wichford Property Management Ltd
Philip Cooper 020 7495 7111
Stephen Oakenfull 020 7811 0100
Citigate Dewe Rogerson 020 7638 9571

George Cazenove Kate Lehane

Notes to editors

Wichford P.L.C. (UK Listed: WICH) is a property investment company, with a portfolio focused on investment property occupied exclusively by Central and State Government bodies. Approximately a quarter of the portfolio comprises public sector rented properties in France, Germany and the Netherlands.

This information is provided by RNS The company news service from the London Stock Exchange

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