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
£62m 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 £1.6bn, 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.