Plexus Holdings PLC (AIM:POS) said it recently completed a 15-year sub-lease of Burnside House, one of its properties in Aberdeen.
The sub-lease has been agreed with a third party at an initial rent of £76,146 per year for the first four years, according to a statement.
After that, the rent will rise to £215,000 per year for three years at which point a review will take place to adjust the rent to an open market rate.
Plexus, an AIM-quoted oil and gas engineering services business, said it also sold the leasehold interest, which is a ground lease lasting until 2076, to Burnside House Limited to “accelerate the receipt of cash”.
Burnside House Limited is a private company set up solely for the purpose of acquiring the leasehold and is owned by Plexus chief executive Ben van Bilderbeek, as well as some of his family members.
Plexus said it carried out an assessment to see if it would be possible to sell the leasehold to a third party, but as this was not agreed upon in a timely manner, Burnside House Limited was created.
Burnside House Limited will pay £1.05mln in cash to Plexus upon completion, which it said will be used to strengthen Plexus' working capital position.