News Column

Unitech Corporate Parks Reaches Deal To Sell Property Interests

June 11, 2014

Steve McGrath

LONDON (Alliance News) - Unitech Corporate Parks PLC Wednesday said it has signed an agreement to sell its property interests subsidiary to an affiliate of Brookfield Property Partner for about GBP205.9 million in cash, and expects to return cash to shareholders once the deal is completed.

The investor in Indian property had said in April that it had received an approach about the possibility of acquiring its Candor Investments Ltd subsidiary, which is the holding company for Unitech's interests in all of its six real estate developments.

In its statement Thursday, Unitech said it expects to have the cash to return about 56 pence a share to shareholders once the deal completes. That would be a 45% premium to its share price on April 2, the day before it announced the approach, and a 79% premium to its lowest share price in the last 12 months. It would also be above its estimated net asset value per share of about 53 pence as of March 31.

The deal needs to be cleared by Unitech shareholders, and the company will also seek permission to change its investing policy to allow the cash return.

"The offer for UCP's property interests from Brookfield at above the latest book valuation reflects the hard work put in over recent years to let the office space and grow income, in order to achieve the best possible price on behalf of investors in the company," Chairman Donald Lake said in a statement.

"The Independent Directors believe that the proposed sale represents a very attractive opportunity for investors to realise strong value from the properties and facilitate a distribution of the proceeds, and I urge all shareholders to vote in favour of the resolutions proposed at the extraordinary general meeting," Lake added.

The EGM will be held June 27.

Unitech shares were up 16% at 53.669 pence Wednesday morning, one of the biggest gains on AIM.

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Source: Alliance News

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