Gresham House Plc (LON:GHE), the specialist asset manager, has today announced that it has exchanged contracts with St. Modwen Developments Limited to sell Southern Gateway, its property in Speke for a gross value of £7.25 million, with completion expected shortly thereafter. Gresham House will use the proceeds of the sale of this inherited legacy asset to repay in full its outstanding loan of £4.4 million with Kleinwort Hambros (formerly Kleinwort Benson), with the balance adding to the net cash balance sheet position, which is intended to support the Company’s growth strategy.
In the financial year ended 31 December 2016, Southern Gateway generated net rental income of £0.46 million and was held on the Company’s balance sheet at £7.75 million.
Tony Dalwood, CEO of Gresham House Plc, said: “We are pleased to announce the sale of Southern Gateway. This leaves the land at Newton-le-Willows as the only remaining significant legacy asset, having been inherited by the management team in December 2014. This brings the disposal of legacy assets to over £16 million, which is greater than the market capitalisation of the Company prior to this management team’s involvement. The disposal adds to the significant cash and liquid assets on the Gresham House balance sheet and we will continue to use this capital to deliver a sustainable, valuable and growing asset management business.”