KLR Keller Group Plc

 
TIDMKLR 
 
For immediate release 
 
13 May 2016 
 
                               Keller Group plc 
 
                           ("Keller" or "the Group") 
 
                            Acquisition of Property 
 
Keller announces that it has acquired the freehold of a processing and 
warehousing facility at Avonmouth, near Bristol, for GBP62m from GJ3 Limited and 
GJ4 Limited, pursuant to a settlement agreement in connection with the 
previously announced contract dispute arising on a project completed in 2008. 
 
As set out in Keller's Annual Report & Accounts, the Group's final liability 
from this dispute is in part dependent on the value of the property after some 
remedial works.  In order to maximize this value, the Board has decided to 
acquire the property now with a view to marketing it to third parties 
imminently, and the intention of completing a sale before the end of 2016. 
 
The facility is fully operational, has a tenant on a long term lease and the 
acquisition price represents an annual rental yield of 6.8%. Keller expects to 
recoup most, if not all, of the purchase price on sale. Management is confident 
that the existing provision in respect of this settlement will prove more than 
adequate. 
 
This purchase has been largely financed by a new bank facility raised for this 
purpose and will have no impact on the Group's trading or on the implementation 
of its strategic objectives. 
 
The Group will update the market on trading at the time of its Annual General 
Meeting on 24 May 2016. 
 
For further information, please contact: 
 
Keller Group plc                           www.keller.co.uk 
 
James Hind, Finance Director               020 7616 7575 
 
 
Finsbury 
 
Gordon Simpson, Rowley Hudson              020 7251 3801 
 
Notes to Editors: 
 
Keller is the world's largest independent ground engineering specialist, 
providing technically advanced and cost-effective foundation solutions to the 
construction industry. With annual revenue of around GBP1.6bn, Keller has 
approximately 10,000 staff world-wide. 
 
Keller is the clear market leader in the US and Australia; it has prime 
positions in most established European markets; and a strong profile in many 
developing markets. 
 
 
 
END 
 

(END) Dow Jones Newswires

May 13, 2016 02:00 ET (06:00 GMT)

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