Dealer group Pendragon has announced an estimated £14 million profit from the sale of property.
The firm held a 5% stake in King Arthur Holdings and following the sale of subsidiary King Arthur Properties is expects to receive in the region of £24m in respect of its original £10m investment, resulting in an estimated non-underlying profit of £14m.
The investment had been returning an underlying dividend income of £1.1 per annum. The proceeds will be applied to the reduction of debt.
King Arthur Properties was the landlord in respect of 73 properties operated by Pendragon as car dealerships, together with its head office. King Arthur Properties has been acquired by W. P. Carey Inc.
Pendragon chief executive Trevor Finn (pictured) said: “I am delighted to announce this successful property transaction for the benefit of our shareholders.
“It is reassuring to have, in W. P. Carey, a long-term investor for a portfolio of our dealerships in the UK and we look forward to working together with them.”
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