Stobart to buy property business from directors

Logistics group Stobart has agreed to buy a property business owned by two of its directors for £12.35m.

Under the terms of the deal for WADI Properties, Stobart will take on debt of £88.8m giving the transaction an enterprise value of £101.2m.

WADI is owned by Stobart's chief executive Andrew Tinkler and chief operating officer William Stobart.

It owns 18 sites, most of which are in the South East. At 30 November the portfolio had a market value of £98.9m according to Knight Frank.

Warrington-based Stobart said the portfolio is anticipated to generate a return of 10% a year, including a forecast investment in some of the properties of up to £13.5m.

Rodney Baker-Bates, non-executive chairman of Stobart, said: "This portfolio will both diversify and strengthen our existing property portfolio. We have the management capability within the group to improve both the income and capital performance. It will provide positive cash flow, gives a return above our current cost of capital, and offers substantial capital upside potential.

"The transaction brings with it an attractive fixed-rate debt package which will benefit the whole group up to 2017, as well as potential tax advantages given the current mix of earnings and assets."

In the same stock market statement Stobart also said it expects to meet current full-year expectations for the year to 29 February.

Your Comments

Read our comments policy

Related Articles

Sign up to receive the Place Daily Briefing

Join more than 13,000 property professionals and receive your free daily round-up of built environment news direct to your inbox

Subscribe

Join more than 13,000 property professionals and sign up to receive your free daily round-up of built environment news direct to your inbox.

By subscribing, you are agreeing to our Terms & Conditions and Privacy Policy.

"*" indicates required fields

Your Job Field*
Other regional Publications - select below