Shareholders are referred to the announcement dated 13 July 2017, wherein MAS announced that it had, through its wholly-owned subsidiary, New Waverley 20 Limited, entered into a lease with the UK government for the office component of the New Waverley development in Edinburgh, Scotland.
The pre-let agreement encompasses a lease, with a UK government guarantee, for a term of 25 years commencing upon practical completion of the development. The lease has a tenant break at year 20 and option to extend for a further 10 years. The 189,111 sq ft development is expected to complete in June 2019.
Shareholders are hereby advised that New Waverley 20 Limited entered into an agreement to dispose of the office land at New Waverley to Legal & General and to develop the pre-let office on a forward-sold basis for Legal & General. The Forward Funding Agreement provides for funds to be drawn down by the Company, as developer, from Legal & General against development costs incurred. New Waverley 20 Limited will initially receive the land value of £20.8 million (approximately €23.5 million) upon disposal of the office land, with further development profits payable upon practical completion.
The transaction reflects the strong income stream, covenant strength and rare prime city centre development opportunity afforded by the New Waverley development. The risk-free nature of the income stream from the UK government lease and guarantee has attracted significant interest from large institutional investors. The disposal facilitates the recycling of capital into further opportunities as part of the Group’s stated investment strategy. This announcement is voluntary and for information purposes only.