Last year the vendor, Ashtenne Holdings, agreed the letting of all 570 houses to the USAF on a new 10-year lease, from May 1, 2003, at an initial rent of £4 million per annum, payable annually in advance.
Ashtenne acquired the Lakenheath Estate of 640 houses in 2001, at which time they were valued by King Sturge at £26 million. Early in 2003 Ashtenne sold 70 houses, no longer required by the USAF, for £7.5 million before negotiating the new lease on the remainder.
The sale price shows a profit for Ashtenne of £9.8 million ($18 million) over book value as at Dec. 31, 2003. The proceeds will be used to pay down existing borrowing.
Ian Watson, joint chief executive of Ashtenne Holdings, says: "This is a textbook example of what we try to do. We bought this asset with a lease coming to an end within the year as part of a corporate 'job lot'. We then renewed the lease on excellent terms and have now sold the property to crystalise the very considerable value added."
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