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Morgan Sindall Grp MGNS Morgan Sindall increases investment in ISIS



  Morgan Sindall Grp (MGNS) - Morgan Sindall increases investment in ISIS

RNS Number : 7448R
Morgan Sindall Group PLC
22 November 2012
 



 

 

22 November 2012

 

                                       

      Morgan Sindall increases investment in ISIS Waterside Regeneration

 

Morgan Sindall Group plc announces that its Urban Regeneration division,  Muse 
Developments Limited ('Muse'),  has increased its  effective participation  in 
the ISIS Waterside Regeneration Limited Partnership ('ISIS') to 50% from  25%. 
ISIS  undertakes  regeneration  of  waterside   sites  in  the  UK  and   this 
announcement demonstrates  Muse's ongoing  commitment to  the regeneration  of 
waterside locations in the UK's main cities, and the Group's continuing  focus 
on growing its regeneration business.

 

ISIS is a joint  venture between the  Canal & River  Trust and the  investment 
vehicle Warp 4 Limited Partnership ('Warp 4'). Muse has acquired the remaining
50% interest in Warp 4 from Igloo Regeneration Property Unit Trust  ("Igloo"), 
part of the Igloo Regeneration Fund  group, an Aviva Investors Fund, with  the 
result that Warp 4 is now wholly-owned by Muse.

 

The consideration for Igloo's interest in Warp 4 is £20.5m payable in cash  by 
Muse in installments over the period July 2013 to July 2017. Seventy per  cent 
of the consideration is  not payable until 2016/17.  In addition in July  2017 
Igloo may receive a share of the profit in Warp 4 arising from the development
of one of the ISIS sites. Igloo is  entitled to a twenty percent share of  net 
profit in Warp 4 from the development of the site in excess of £17.5m  subject 
to a cap  on any such  payment of £20m.   Muse does not  expect the profit  to 
exceed current projections by such an  amount as to trigger this profit  share 
payment to Igloo.

 

At 31 December 2011, Warp 4 had net assets of £35m and incurred a loss of  £2m 
in that financial year from its  investment in ISIS. The losses generated  are 
expected to reduce significantly in  2012 and 2013 and  Warp 4 is forecast  to 
generate profit from 2014  onwards as the ISIS  investment in new  development 
projects begins to generate  returns.  The deferred  payment terms agreed  for 
the acquisition are expected, when balanced against anticipated  distributions 
receivable from ISIS,  to result in  a broadly cash  neutral position for  the 
Group in the  short term, with  more significant medium-term  benefits as  its 
investment in new development projects begins to generate returns.

 

John Morgan,  Chief Executive,  commented  "We are  pleased to  have  acquired 
Igloo's 50% interest in Warp  4. This acquisition demonstrates our  commitment 
to the  regeneration of  waterside  locations in  the  UK's main  cities,  and 
underlines the Group's continuing focus on growing the regeneration business."

 

                                   - ends -

 

 

NOTES TO EDITORS: 

 

About ISIS Waterside Regeneration Limited Partnership ('ISIS')

ISIS is a joint venture between Warp  4 and the Canal & River Trust  (formerly 
British Waterways)  set  up to  undertake  regeneration of  waterside  sites.  
Current locations include  Manchester, Leeds,  Brentford, Glasgow,  Nottingham 
and Birmingham.

 

 

 

About Warp 4 Limited Partnership

Warp 4 Limited Partnership was established  in 2002, as a 50:50 joint  venture 
between Muse Developments and Igloo  Regeneration Property Unit Trust, a  fund 
controlled by  Aviva, to  invest  solely in  the ISIS  Waterside  Regeneration 
Limited Partnership.

 

About Igloo Regeneration Partnership

 

The Igloo Regeneration Partnership was established by Aviva Investors in  2002 
to invest in urban development projects in the top 20 cities in the UK.  Igloo 
follows a market leading Sustainable Investment Policy called Footprint^TM and
was credited by the United Nations  as the world's first responsible  property 
investment fund

 

About Muse Developments Limited ('Muse')

Muse is a UK-wide urban regeneration business specialising in the delivery  of 
complex mixed-use development projects, predominantly in town and city  centre 
locations. Muse has a portfolio of  around 30 projects, the majority of  which 
are delivered in partnership with public and private sector landowners.

 

About Morgan Sindall Group plc

Morgan Sindall Group plc is a  leading UK construction and regeneration  group 
with revenue of over £2 billion  and which operates through five divisions  of 
construction  and   infrastructure,  affordable   housing,  fit   out,   urban 
regeneration and investments.

 

 

ENQUIRIES:

 

Morgan Sindall Group plc                                  Tel: 0207 307 9200

John Morgan, Chief Executive

David Mulligan, Finance Director

 

Brunswick                                                                 Tel: 
0207 404 5959

Nick Cosgrove

Alison Kay

 

                     This information is provided by RNS
           The company news service from the London Stock Exchange
 
END
 
 
MSCUAVWRUAAAUAA -0- Nov/22/2012 07:00 GMT
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