Plastics Capital plc (AIM: PLA), the niche plastics products manufacturer, is pleased to announce that it has exchanged on a sale and leaseback agreement with JLW Properties Limited relating to the Group’s property at Gilpin Street and Tavistock Street in Dunstable where Palagan, a Group subsidiary which manufactures high strength customised films, is based. Completion of the sale and leaseback will occur on 25th October. The consideration receivable in cash by the Group on completion is £1.3 million and the Group has entered into a 15 year lease, with five yearly rent reviews. The commencing rent will be £120,000 per annum.
Commenting on this transaction, Executive Chairman of Plastics Capital, Faisal Rahmatallah said:
“We received an excellent offer for the Palagan property, which was significantly above book value. We accepted the offer as we are able to deploy this capital more effectively in support of our growth. This transaction also reduces our net debt further and underlines how our financial structure is normalising.”