• Major property disposal
• £18.3mn cash proceeds deleverage balance sheet
• Refinancing of student accommodation block in progress
Property group Conygar (CIC:32p) has announced an important disposal, the significance of which has yet to be fully reflected in its share price.
The £18.5mn sale of a 203-acre brownfield site in Anglesey to a wholly owned subsidiary of Stena Line (UK) will generate net cash proceeds of £18.3mn and enable Conygar to fully repay the £5.6mn outstanding balance on a high-interest ASK Partners loan secured against its 36-acre Island Quarter site in Nottingham city centre (pictured). In late summer, the group sold its Virgin Active gym at the Island Quarter site for £6.75mn, or 10 per cent below carrying valuation, to repay more than half of the £12mn ASK Partners loan, which incurs interest at a 5.9 per cent margin above Bank of England base rate and is due for repayment by 15 November 2025.