ANNINGTON FUNDING
PLC
(incorporated with limited
liability in England and Wales)
17 DECEMBER
2024
THIS ANNOUNCEMENT CONTAINS
INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF
THE MARKET ABUSE REGULATION (EU) 596/2014 AS IT FORMS PART OF
DOMESTIC LAW OF THE UNITED KINGDOM BY VIRTUE OF THE EUROPEAN UNION
(WITHDRAWAL) ACT 2018, AS AMENDED ("EUWA") ("UK
MAR").
SALE OF mQE UNITS TO
mOd
Annington is pleased to announce that
it has agreed the sale of its interests in the Married Quarters
Estate ("MQE") to the Ministry of Defence ("MOD"). The MQE
comprises approximately 36,000 properties located in England and
Wales, together with adjoining land. Exchange of contracts in
relation to the sale occurred on 16 December 2024, and the
transaction will close on 9 January 2025.
The terms of the sale are as
follows:
·
Save in relation to units identified below,
Annington will surrender its 999-year lease of all the remaining
MQE units to the MOD.
·
In consideration for the surrender of the lease of
these units, MOD will pay to Annington £5,994,500,000. This amount
will be paid upon the transaction closing.
·
MOD will continue to pay rent on the MQE until
closing and, including rent for the quarter in advance on closing,
such rent is anticipated to be c.£10.3-10.5 mln.
·
To the extent not already surrendered, the MOD will
surrender its leasehold interest in 159 units, which have already
been identified to Annington within c. 4 months of closing, and
Annington will acquire the freehold of those units thereafter. MOD
served notices to terminate the leases of these units prior to
exchange, in accordance with the terms of its prior arrangements
with Annington.
·
The MOD will transfer to Annington additional
property with an aggregate value of £55 mln following closing. The
MOD will identify these within 12 months of closing and Annington
will acquire the freehold of these units thereafter.
·
Annington and the MOD will continue to work
together following closing to secure the separation of the units
handed back to Annington by the MOD which utilise utilities
supplied by the MOD within 3 years of the date of exchange, subject
to an extension of more than 5 years.
·
All other contractual arrangements between
Annington and the MOD relating to the MQE will be terminated on
closing.
·
All actual or potential claims between the parties
in connection with the MQE will be settled, (save for leases where
there have been hand backs that have been completed or instigated),
including the existing proceedings in relation to the MOD's
attempts to enfranchise the MQE.
Following the transaction, Annington
will have a portfolio of non-MQE assets and will continue to be a
property investment company with a long-term business plan to
invest in UK residential real estate assets.
Stephen Leung
Chief Financial Officer
Media Enquiries:
Annington@brunswickgroup.com
Annington Funding plc
Hays Lane House
1 Hays Lane
London
SE1 2HB
This notice is released by Annington
Funding plc and contains information that qualified or may have
qualified as inside information for the purposes of Article 7 of UK
MAR. For the purposes of UK MAR and Article 2 of Commission
Implementing Regulation (EU) 2016/1055 as it forms part of domestic
law of the United Kingdom by virtue of the EUWA, this announcement
is made by Stephen Leung, Chief Financial Officer of Annington
Limited.
LEI: 549300KK63W8VZIONZ83