Alina Holdings PLC: Trading Update

Trading Update

Alina Holdings PLC

Alina Holdings PLC

(Reuters: ALNA.L, Bloomberg: ALNA:LN)

(Alina, ALNA or the Company)

Trading Update

The Company is pleased to announce the sale of its Crompton shopping arcade located at Shaw, Oldham; the sales price achieved was £750K, slightly below book value ('BV') of £800K, but with no development potential the Board of Directors ('Board') (considered the sale price, at close to BV, to be a good result.

Following the Shaw sale, the Company has three remaining properties in Bristol (Commercial Lease), Hastings (Commercial Lease) and Shropshire (Residential Lease).

The Companys objectives are still to sell these assets over time. However, the Board are of the opinion that a limited amount of investment in both Brislington and Hastings will enhance the value of these properties and result in potential sales values in excess of BV.

Brislington, Bristol:

In respect of Brislington, advanced stage architectural designs have been completed for the re-development of the site, including a mix of commercial units and up to 96 dual aspect apartments (currently only one) in four new blocks with car parking. Envisaged is a greatly improved public space with external seating areas, stepped terraces, communal garden and play area. The Companys architect is now engaged with Bristol City Council regarding planning permission.

The Board believes that the project has good potential for planning consent as it will also assist the local council in achieving their need for a substantial increase in Social Housing.

Hastings, East Sussex:

In respect of Hastings, the Companys leasehold property at 25 Castle Street is currently being refurbished. The property extends to 14,655 sq. ft. of which 9,617 sq. ft. are currently vacant following the departure of Argos. Argos (now part of J Sainsbury PLC) had a full repairing lease but did not fulfil their contractual obligations before departing. The Company is now in dispute with Argos/Sainsbury to recover the full amount of the repair rather than the derisory amount that they have offered. 

Refurbishment has been delayed due to the existence of asbestos, which was discovered during the pre-construction planning survey.

Whilst the departure of Argos has resulted in the short-term reduction of rental income, the Board is confident that the gross rental income of the property should be significantly increased once repair to the ground floor, and conversion of the upper two floors to mixed residential/workspace has been completed. Works to the upper floors are subject to planning consent. The Boards opinion that gross rental income can be significantly increased is based on the fact that Argos were not paying anything close to current market rates.

Stafford, Shropshire:

The smallest of the Companys remaining properties is a three-apartment residential unit in Shropshire which the Board is seeking to sell.

Duncan Soukup, Chairman, on behalf of the Board:

The disposal of the Oldham shopping arcade, following the sale of the Companys single unit in Forfar, Scotland, was the second disposal of the Companys legacy property assets. The Board is confident that the Companys development plans for Brislington and Hastings have the potential to significantly enhance shareholder value, and we look forward to updating the market with further good news in due course.

On a less positive note, we regret the previously announced pending suspension of the Companys shares, due to the delay in publishing 2022 accounts, but are hopeful that the suspension will be both temporary and short-lived.

END

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