Dominic White, CEO of K&C REIT plc (AIM: KCR) Acquisition of Karlind Management Services
Completed acquisition of Karlind Management Services Limited ("Karlind")
Further to the announcement on 3 April 2018, KCR Residential REIT ("KCR") is pleased to announce that it has completed the acquisition of the entire issued share capital of Karlind, a company that owns 16 studio, one-and-two bedroom apartments in Ladbroke Grove, Kensington and one leasehold two-bedroom apartment in Harrow, for a total consideration of £5.35 million. KCR will satisfy the consideration through its banking facilities and cash reserves.
KCR intends to deploy its proven active management skills to increase property values and rental yield through internal refurbishment and by obtaining planning consent for roof and rear extensions to the Kensington properties.
The apartments, which are fully let, are situated in desirable locations for tenants given the close proximity to transport links and local retail and leisure amenities. The portfolio has a total rental income of over £0.25 million, and delivers a gross annual yield on consideration of 4.8 per cent.  The average unit value of the acquired properties is £314,700 and the average monthly rent is approximately £1,250 (£32 per sq. ft. per annum).
Dominic White, the chief executive of KCR, commented:
"This important acquisition fits perfectly within KCR's acquisition and growth strategy and will significantly increase the Company's net asset value per share. We are confident that we can further grow property value and rental yields through active management and our planned refurbishments."