LONDON (ShareCast) - (ShareCast News) - KCR Residential announced on Wednesday that its wholly-owned subsidiary, K&C Osprey, has acquired a further apartment within one of its freehold retirement residential developments.
The AIM-traded real estate investment trust said the 67-year lease of the apartment was purchased for a consideration of £317,500, excluding costs.

It said the acquisition was funded via the drawdown of an additional £0.5m nominal value convertible loan note at par under the instrument utilised for the convertible loan note of £1.35m, issued on 10 July.

In common with that initial tranche, the new loan note attracted interest at a rate of 6% per annum, payable quarterly in arrears.

The new loan note would be redeemed on 30 June 2020, and could be converted into ordinary shares of 10p in the company at a price of either £1.20 per share or, in certain circumstances, the price at which the company places further ordinary shares with investors prior to 30 June 2020.

In line with its previous leasehold acquisitions, the apartment would be refurbished and sold subject to a new 125-year lease such that K&C Osprey retained the freehold interest.

"We reported earlier in 2017 that, since acquiring the freehold Osprey portfolio in May 2016, the asset had outperformed expectations," said KCR CEO Dominic White.

"We have subsequently acquired four leasehold apartments as part of our strategy to improve yield generation and increase value over the long term, and we will seek to make further leasehold acquisitions as opportunities present themselves."

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