.gif)
The assets are owned by Kier Developments Limited and its subsidiaries. As a result of the transaction, Kier Property Limited, a subsidiary of Kier, now owns the entire issued share capital of Kier Developments.
The aggregate consideration for the transaction which is payable to the sellers (Bank of Scotland plc and Uberior Ventures Limited, each of which forms part of Lloyds Banking Group) is £91m, of which £35m was paid in cash on completion, £30m will be paid in cash in October 2012 and £26m will be paid in cash in October 2013. The consideration, which was based on an independent valuation of the assets, also releases Kier Developments and its subsidiaries from all debt payable to Lloyds Banking Group.
-- Advertisement --
The portfolio of real estate assets includes:
- two prime office buildings in Cavendish Place and Savile Row in central London
- a mixture of commercial and residential land in Frimley, Swindon, Southampton, Heathrow, Uxbridge and Ashford
- a retail development in Chichester which is currently expected to have been sold by 30 June 2011
- two industrial units in Weybridge, which are expected to be sold shortly, and a further industrial unit in Romford
The audited consolidated net assets and the audited consolidated gross assets of Kier Developments as at 30 June 2010 were £(4.0)m and £168.0m, respectively. For the financial year ended 30 June 2010, Kier Developments reported a consolidated gross profit of £2.5 m, which resulted in a net loss before tax of £2.7m.
(CD/GK)
