Nexus Infrastructure sells, leases back new head office

4th Apr 2022 12:21

(Sharecast News) - Nexus Infrastructure announced the sale-and-leaseback of its head office building Nexus Park on Monday.

The AIM-traded firm said Nexus Park was completed in 2021, and was occupied by all of its subsidiaries from last summer.

It said it had completed the sale-and-leaseback of the freehold of Nexus Park with Dorsel UK 4 Limited.

The disposal included the 4.7 acre site and the three story, 35,000 square foot head office building.

It said the assets were being sold at net book value, and so a breakeven result was being recorded, prior to disposal costs of £0.15m.

The proceeds of £13.5m would be used to clear existing bank debt of £10.8m, with the balancing £2.7m enhancing its cash reserves.

Nexus said it simultaneously entered into a 20-year lease for Nexus Park, which would create an IFRS 16 right-of-use asset of £11.3m and an associated lease liability of £11.4m.

"I am pleased to have successfully completed this transaction," said chief executive officer Mike Morris.

"The proceeds clear the bank loans associated with the development of the property and crystalise our investment in the land.

"Our balance sheet is strong and now free of borrowings, which will support our future growth."

At 1100 BST, shares in Nexus Infrastructure were up 4.32% at 214.9p.