PENDRAGON PLC - Sale and Leaseback of Property at Porsche Stockport
PR Newswire
London, May 29
Pendragon PLC
("Pendragon or the "Company")
Sale and Leaseback by Pendragon of Property at Porsche Centre Stockport
Notification of Class 2 Transaction
The Company is pleased to announce that, in accordance with its plan for its motor vehicle dealership in Stockport (the "Property"), the Company has entered into a sale and leaseback agreement over the Property with Al Mana Property International Limited ("Al Mana"), a special purpose vehicle forming part of the Al Mana Group of Companies, for the purposes of property investment (the "Transaction").
Under the terms of the Transaction, Pendragon has received £10.5 million in cash, while retaining the use of the Property under a 15 year lease. The proceeds from the Transaction will be used for general corporate purposes.
Pendragon Sabre Limited, the Company's wholly owned subsidiary, has security of tenure as the tenant, with Pendragon acting as the lease guarantor under the terms of the Transaction. The Transaction is in line with the Company's ambition to focus its resources on generating returns through its motor businesses whilst ensuring the Property remains available to Pendragon. The lease carries a market rent of £665,000 per annum. As at the date of the Company's annual results for the year ended 31 December 2019, the Property carried a gross asset value of £9.8 million.
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