Gresham House sells Speke property to St Modwen

Specialist asset manager Gresham House announced on Monday that it has exchanged contracts with St Modwen Developments to sell Southern Gateway, its property in Speke, for a gross value of £7.25m, with completion expected shortly thereafter.

The AIM-traded company said it would use the proceeds of the sale of the “inherited legacy asset” to repay in full its outstanding loan of £4.4m with Kleinwort Hambros, with the balance adding to the net cash balance sheet position, which was intended to support the company's growth strategy.

In the financial year to 31 December 2016, Southern Gateway generated net rental income of £0.46m and was held on the company's balance sheet at £7.75m.

“We are pleased to announce the sale of Southern Gateway,” said Gresham House CEO Tony Dalwood.

“This leaves the land at Newton-le-Willows as the only remaining significant legacy asset, having been inherited by the management team in December 2014.”

Dalwood said the sale brought the disposal of legacy assets to more than £16m, which is greater than the market capitalisation of the company prior to the management team's involvement.

“The disposal adds to the significant cash and liquid assets on the Gresham House balance sheet and we will continue to use this capital to deliver a sustainable, valuable and growing asset management business.”