DJ Alina Holdings PLC: Trading Update
Alina Holdings PLC (ALNA) Alina Holdings PLC: Trading Update 28-Apr-2023 / 14:07 GMT/BST
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Trading Update
Alina Holdings PLC
Alina Holdings PLC
(Reuters: ALNA.L, Bloomberg: ALNA:LN)
("Alina", "ALNA" or the "Company")
Trading Update
The Company is pleased to announce the sale of its Crompton shopping arcade located at Shaw, Oldham; the sales price achieved was GBP750K, slightly below book value ('BV') of GBP800K, but with no development potential the Board of Directors ('Board') (considered the sale price, at close to BV, to be a good result.
Following the Shaw sale, the Company has three remaining properties in Bristol (Commercial Lease), Hastings (Commercial Lease) and Shropshire (Residential Lease).
The Company's objectives are still to sell these assets over time. However, the Board are of the opinion that a limited amount of investment in both Brislington and Hastings will enhance the value of these properties and result in potential sales values in excess of BV.
Brislington, Bristol:
In respect of Brislington, advanced stage architectural designs have been completed for the re-development of the site, including a mix of commercial units and up to 96 dual aspect apartments (currently only one) in four new blocks with car parking. Envisaged is a greatly improved public space with external seating areas, stepped terraces, communal garden and play area. The Company's architect is now engaged with Bristol City Council regarding planning permission.
The Board believes that the project has good potential for planning consent as it will also assist the local council in achieving their need for a substantial increase in Social Housing.
Hastings, East Sussex:
In respect of Hastings, the Company's leasehold property at 25 Castle Street is currently being refurbished. The property extends to 14,655 sq. ft. of which 9,617 sq. ft. are currently vacant following the departure of Argos. Argos (now part of J Sainsbury PLC) had a full repairing lease but did not fulfil their contractual obligations before departing. The Company is now in dispute with Argos/Sainsbury to recover the full amount of the repair rather than the derisory amount that they have offered.
Refurbishment has been delayed due to the existence of asbestos, which was discovered during the pre-construction planning survey.
Whilst the departure of Argos has resulted in the short-term reduction of rental income, the Board is confident that the gross rental income of the property should be significantly increased once repair to the ground floor, and conversion of the upper two floors to mixed residential/workspace has been completed. Works to the upper floors are subject to planning consent. The Board's opinion that gross rental income can be significantly increased is based on the fact that Argos were not paying anything close to current market rates.
Stafford, Shropshire:
The smallest of the Company's remaining properties is a three-apartment residential unit in Shropshire which the Board is seeking to sell.
Duncan Soukup, Chairman, on behalf of the Board:
"The disposal of the Oldham shopping arcade, following the sale of the Company's single unit in Forfar, Scotland, was the second disposal of the Company's legacy property assets. The Board is confident that the Company's development plans for Brislington and Hastings have the potential to significantly enhance shareholder value, and we look forward to updating the market with further good news in due course."
"On a less positive note, we regret the previously announced pending suspension of the Company's shares, due to the delay in publishing 2022 accounts, but are hopeful that the suspension will be both temporary and short-lived."
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Investor Enquiries: enquiries@alina-holdings.com Alina Holdings PLC
www.alina-holdings.com
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ISIN: GB00B1VS7G47 Category Code: TST TIDM: ALNA LEI Code: 213800SOAIB9JVCV4D57 Sequence No.: 240510 EQS News ID: 1620889 End of Announcement EQS News Service =------------------------------------------------------------------------------------
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(END) Dow Jones Newswires
April 28, 2023 09:08 ET (13:08 GMT)
