Divestment of Investment Property
AIREA sells Bury investment property for £4.175m to repay all bank debt and strengthen cash position.
- Disposal consideration £4,175,000
- Net consideration £4,146,250
- Carrying value at 31 December 2024 £4,100,000
- Annual rental income (2024) £345,000
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AIREA plc (AIM: AIEA), the UK design-led specialist flooring company, supplying both the UK and international markets, announces that it has today exchanged contracts on the disposal of its investment property in Bury, Greater Manchester (the "Investment Property"), to M&T Investments Group Limited for a total cash consideration of £4,175,000 (the "Disposal"). Legal completion of the Disposal is expected to take place on 3 October 2025.
The total consideration includes a rent-free period of one month amounting to £28,750. Deducting this from the total consideration gives a net consideration of £4,146,250 which is similar to the carrying value of the property on the balance sheet as at 31 December 2024 of £4,100,000.
In the year ended 31 December 2024, the Investment Property generated a rental income of £345,000.
The proceeds from the Disposal will be applied to the repayment of all bank debt, thereby strengthening the Group's cash position considerably. This will in turn provide the Group with additional financial flexibility during a period of significant investment ahead of the expected future growth of the Group.
Cleaned text: letterheads, contacts and legal notices removed. View the original announcement ↗ · Company filings. Not investment advice.