XAUMF - Goldmoney Inc. Announces Third Property Acquisition in the UK | Benzinga
TORONTO, Dec. 22, 2023 (GLOBE NEWSWIRE) -- Goldmoney Inc. (TSX:XAU) (OTC:XAUMF) ("Goldmoney" or the "Company"), is pleased to report that further to its press release of June 13, 2023 announcing the Company's real assets investment strategy, the Company's subsidiary Goldmoney Properties Ltd. has completed the acquisition of its third property in the UK.
On December 22, 2023, Goldmoney Properties completed the acquisition of St James Place I and II, in Cirencester, Cotswold District, in the county of Gloucestershire, United Kingdom. The asset is comprised of two buildings with a total gross internal area (GIA) of 132,763 square feet. St James Place I was built in 2007 and won the British Council for Offices (BCO) award for Best Corporate Workplace in the South of England & Wales region in 2008. St James Place II was built in 2016 and won the BCO award for Best Corporate Workplace in the South of England & Wales region in 2017. The two buildings were acquired by ABRDN and a subsidiary of Phoenix Group Holdings for £47.4 million in 2019.
Goldmoney Properties has acquired the building from ABRDN and a subsidiary of Phoenix Group Holdings in an off-market transaction for consideration of £26.5 million (approximately CAD $44.8 million). The acquisition was financed by Barclays PLC at a loan-to-value (LTV) ratio of approximately 65%. The financing rate is fixed for a period of five years at an interest rate of approximately 5.25% and is non-recourse to Goldmoney Properties. The two buildings serve as the global headquarters for a FTSE 100 Company and are let to the company under a full repairing and insurance lease producing £2.35 million (approximately CAD $4 million) of net rental income per annum. The remaining term on the two leases is 18 years through February 2042, with annual rent increases of between 1% and 5% indexed to the Retail Price Index (RPI).
Following this acquisition, Goldmoney Inc. has a liquid working capital position of approximately CAD $20 million consisting of cash and precious metals (unaudited).
Statement from Roy Sebag, Founder and CEO of Goldmoney Inc.
"With the acquisition of St James Place I and II, Goldmoney Properties now owns three long-life high quality real assets totaling over 412,000 square feet. Our property portfolio is expected to produce circa $11 million of inflation indexed net rental income in 2024 with a blended remaining lease term on our portfolio of 14.3 years. We believe that each one of our properties provides an irreplaceable purpose and usefulness within the built-up environment serving the local communities where we have invested. Our last transaction is perhaps the most attractive of all with 18 years of secure income allowing us to finance the building with confidence. Should ...