KRK
08/03/2016 13:13
GENERAL
PRICE SENSITIVE
REL: 1313 HRS Kirkcaldie & Stains Limited
GENERAL: KRK: Conditional Deed of Surrender of Lease for Petone
Market Announcement
8 March 2016
Kirkcaldies enters into a Conditional Deed of Surrender of Lease for the
Petone premises
Kirkcaldie & Stains Limited (the 'Company') has today entered into a
conditional Deed of Surrender of Lease (the 'Deed') in relation to its
leasehold premises at 19 Regent Street, Petone, Lower Hutt ('Petone Lease').
Under the Deed the Company will pay the landlord a surrender payment of
$400,000 plus GST and a real estate agent's commission of $50,000 plus GST on
1 April 2016 and be released from the lease from that date.
In order for the Deed to become unconditional the landlord's agreement to
sell the Petone premises must go unconditional no later than 29 March 2016.
The Company is not able to influence the satisfaction of this condition.
If the Deed becomes unconditional and is completed on the terms outlined
above, this will represent a satisfactory outcome for the Company and relieve
the Company of any future liability for rent at these premises. It will also
give the Board increased confidence that the estimate of residual net assets
communicated to the market on 23 February 2016 will be closer to the higher
end of the range of $6.5 million to $7.5 million (equivalent to $3.18 to
$3.67 per share on issue).
When making that announcement the lower end assumed an ongoing liability for
the Petone premises though to the end of the lease term. Absent this
transaction, the future aggregate minimum payments under the Petone Lease at
1 April 2016, would be, on an undiscounted basis, $1,446,000.
Falcon Clouston
Chairman
ENDS
For further information:
Falcon Clouston
P O Box 1494
Wellington 6140
End CA:00278965 For:KRK Type:GENERAL Time:2016-03-08 13:13:59
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