First Day of Dealings
Commercial Group Properties announces that trading in its shares commences today on the Alternative Investment Market. It is a newly incorporated company established to invest in property development and the Company owns three sites in the South East of England.
The Farthingloe Site is a 273 acre site near Dover in Kent. It currently comprises agricultural land and some listed buildings. Part of the land benefits from planning consent for the erection of 220,000 sq ft of office space which offers the Company a number of development opportunities.
The Manston Site consists of 105 acres of open space within an existing designated business park at Kent International Airport with development potential.
The Western Heights Site comprises 24 acres of land and buildings formerly belonging to the Ministry of Defence and is situated close to Dover. The land has been partially developed by the Ministry of Defence for housing and offers potential for residential development subject to planning consent.
The three Sites have been valued by Savills at an aggregate of #28,000,000 as at 11 January 2007 based on their current planning consents. The net asset value of the Company's Sites after deduction of the Company's existing borrowing is #14,000,000.
The prospective grant of planning consent to develop the Manston and Western Heights Sites and the prospective grant of variation to the planning consent previously granted in respect of the Farthingloe Site will present the Company with the opportunity to extract additional value from the Company's assets.
The Company has an experienced management team. Chris Seymour-Prosser and Ken Wills, the two executive Directors, have both had extensive involvement in property development.
The Company has raised #1.5m (before expenses) through the placing of 3 million new Ordinary Shares at 50p. Market capitalisation following the Placing at the Placing price is #10.5million.
Beaumont Cornish is Nominated Adviser and Broker to the Company.
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