Hayward Tyler disposes, leases back Peterborough property

29th Mar 2016 16:46

(ShareCast News) - Specialist engineering group Hayward Tyler disposed of one of its 11.5 acre Peter Brotherhood property in Peterborough on Tuesday, in a sale-and-leaseback deal with Helical Peterborough (HPL) - a special purpose vehicle owned by Helical Bar.The AIM-traded firm had acquired Peter Brotherhood on 12 October last year.Under the agreement, HPL acquired the property for £7.5m with Peter Brotherhood as the tenant and Hayward Tyler as the guarantor.Peter Brotherhood signed a 15 year lease with a market rent of £575,000 per annum, and subject to market reviews after five and 10 years.Hayward Tyler's board confirmed it will prepay senior borrowings saving estimated interest costs of £250,000 on an annual basis as a result of the sale and leaseback."We believe this transaction provides an excellent mechanism through which to further strengthen our balance sheet following the acquisition of Peter Brotherhood for £9.8m last October," said Hayward Tyler CFO Nick Flanagan."This agreement, combined with the additional revenues that Peter Brotherhood brings to the group, further underlines the value of the acquisition to Hayward Tyler as we continue to develop our presence in the power generation, oil & gas, and industrial sectors."