Caledonian Trust plc (LON:CNN) announced Monday they have agreed to divest a Scottish property, St. Margaret’s House, for £15 million to Drum Property Group Ltd, an award-winning Scottish development company.
The sum of £15m is above well the recorded book value of £5 million attributed in June 2017.
“We are delighted to enter into this agreement with Drum Property Group, a successful and award-winning property company in Scotland, for the sale of St Margaret’s for a cash figure that is significantly in excess of our net book value and the last independent valuation undertaken on the site,” said Douglas Lowe Chairman and CEO of Caledonian Trust.
St. Margaret’s House is a 92,000 feet multi-storey building located in Edinburgh. Caledonian Trust has owned it since 1988.
The company currently has a planning permission at St Margaret’s for a 231,000 feet mixed-use development which includes student accommodation, housing and a wide range of commercial uses.
Caledonian has said it will use funds to invest in new property and repay certain existing debt.
“The net cash proceeds from the Proposed Disposal will, when received on completion, significantly strengthen the Group’s balance sheet and provide funding to enable the Company to accelerate the Group’s existing property development programme,” said Lowe.
Shares were up 4 percent, trading at 182p, as of Monday morning.