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Sutton Harbour completes Salt Quay office sale but warns on market conditions

12 March 2009

Sutton Harbour Group, the regeneration and transport business with a focus on Southwest England, has sold its recently completed Salt Quay office development in Plymouth for £8.7 million.

Sutton Harbour said the disposal of the 42,000 sq ft investment property was in line with its focus on maintaining a stable base and financial structure. Proceeds from the sale will be used to pay down borrowings, with the full repayment of the development facility secured on the project and a reduction in general banking facilities. Following this reduction the company's overall gearing based on its net assets at September 30, 2008 is around 56%.

Elsewhere, the company noted that its other regeneration projects were in an advanced state of realisation, but due to the second half weighting of the projects any delay in their completion will delay the recognition of revenues into the next financial year.

Whilst its marine division is performing in line with expectations, the transport division – which includes airline Air Southwest – is currently trading at around £500,000 below budget. The company said the division was experiencing trading pressures in common with much of the aviation industry.






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