LONDON (ShareCast) - (Sharecast News) - Pennant International announced on Monday that it has exchanged contracts for the sale of three further commercial properties at its Staverton site, generating gross proceeds of £1.2m.
The AIM-traded firm said completion of the transactions was expected on 25 April, at which point it would vacate the sites, which total approximately 8,500 square feet of primarily warehouse space.

No leaseback arrangements were being entered into, although Pennant said it had secured a short-term licence, at a nominal rent, for continued use of certain parking spaces.

The net proceeds, to be received in cash on completion, would be used to reduce the group's overdraft borrowings.

Pennant said it expected to record a small gain on the disposals relative to unaudited book values as at 31 December.

The transactions would also provide additional borrowing headroom, despite a reduction in the group's overdraft facility limit following the release of four properties from the lender's security package.

Marketing of the final two freehold properties at the Staverton site was ongoing, with further updates to be provided in due course.

The latest sales formed part of the property disposal programme that the company first announced in September.

At 0850 BST, shares in Pennant International Group were down 1.82% at 27p.

Reporting by Josh White for Sharecast.com.

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