IPPlus PLC announces that on 1 July 2013 the Group purchased its principal place of business at 1-2 Melford Court, The Havens, Ransomes Europark, Ipswich IP3 9SJ for the sum of £1,550,000 (the "Transaction"). This purchase has been funded by a mortgage of £1,192,500 from the NatWest Bank PLC and existing cash resources.
The Group has occupied the ground floor of this building since May 2000 and is now at a stage where more space is required. The Transaction provides the upper floor of the office block for the Group's planned expansion.
While annual overheads are expected to increase marginally reflecting increased rates on the enlarged property use, the Group's floor space has doubled and the mortgage repayments for the entire building will be less than the current rent for the ground floor.
In addition, and subsequent to the Transaction, the current sub-tenant of the upper floor has agreed to the early termination of its lease in consideration of which it has paid the Group the sum of approximately £353,000. These funds have been utilised by the Group to fund the required deposit, making the transaction broadly cash neutral, and will be recorded as a one-off profit in the results for the year ended 30 June 2014.
Chief Executive Officer, William Catchpole commented, "The office capacity has been a real concern for the Group and the purchase of the building doubles our floor space allowing us to take IPPlus forward in a planned and cost efficient manner."
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