Sale of Chiswick Property

Serviced Office Group plc (“SVO” or “the Group”) is an AIM-listed provider of flexible office space and IT solutions, currently operating 23 business centres, predominantly in the London area. 

The Group is pleased to announce the sale of its long leasehold interest in Gable House for a total cash consideration of £2.9 million. Gable House is a 12,700 sq. ft. business centre, with car parking facilities, located at 18-24 Turnham Green Road, Chiswick, London W4.

Gable House is being acquired by Chiswick Business Centres Limited, a company owned by a private operator of business centres in west London. It will continue to be operated as a business centre and SVO will continue to provide its IT services.  

This sale is in line with the Group’s strategy of selectively selling its remaining property assets in order to focus its resources on shorter leases and management contracts of properties in Central London suitable for use as serviced office accommodation. The Group anticipates using the proceeds from the sale to further expand its operations in Central London.

In the year to 31 December 2012, the profit attributable to Gable House was £157,142. As at 31 December 2012, Gable House had a book value of £2.9 million.

Michael Kingshott, Managing Director of SVO, comments:

“The sale proceeds will enable us to focus on expanding our portfolio of short leasehold and managed sites in Central London, such as our latest flagship property, Phoenix House in King William Street.

“As anticipated in our recent results announcement, this sale represents the first step in the planned sale of our remaining freehold and long leasehold assets. The Board is currently reviewing a number of other offers and hopes to announce further sales in the near future.”  

 26 April 2013