Sale of assets to Waverstone LLP
Notification of Class 2 Transaction
McCarthy & Stone plc (the “Group”), the UK’s leading developer and manager of retirement communities, today announces the completion of a portfolio sale of apartments to Waverstone LLP. The transaction follows an initial sale and lease back of sales offices and show flats to Waverstone LLP in October 2019.
This second transaction involves the sale of 135 units with a balance sheet asset value of c.£32m for a total consideration of c.£35m. This comprises the sale of 41 show flats and sales offices with a subsequent 12-month leaseback, and the sale of 94 finished apartments and apartments under construction in Scotland. The sale of these 94 apartments completes the Group’s strategy to exit its development activity from Scotland.
The Group will receive c.£13m cash on completion with the remaining c.£22m balance expected to be paid over the next three years. The transaction is expected to generate a net profit of c.£3m over a three-year period.
This transaction forms part of the COVID-19 cash optimisation measures set out within the Group’s announcement on 25 March to ensure that the Group has c.2.5 years of cash cover. The Group continues to maintain a strong balance sheet and, as at the end of March, the Group’s available cash balance had increased to c.£141m (after drawdown of its £200m Revolving Credit Facility).
Waverstone LLP appointed McCarthy & Stone Management Services Limited as a sales and managing agent.
Waverstone LLP is a jointly owned entity between Waverley Investments Limited and McCarthy & Stone Extra Care Living Limited, where McCarthy & Stone Extra Care Living Limited holds a non-controlling 49% equity interest. Waverstone LLP was created to facilitate the purchase, management and disposal of various assets built by the Group.
https://www.mccarthyandstonegroup.co.uk/media/press-releases/2020/30-04-2020
