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
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
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
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.
Morgan Sindall Group plc Tel: 0207 307 9200
John Morgan, Chief Executive
David Mulligan, Finance Director
0207 404 5959
This information is provided by RNS
The company news service from the London Stock Exchange
MSCUAVWRUAAAUAA -0- Nov/22/2012 07:00 GMT
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