Bourne End buys two firms

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BOURNE End Properties is buying two property groups valued at pounds 92m, one of which is controlled by Leo Noe, Bourne's chief executive, and his family. After the deal Mr Noe will own 36 per cent of the enlarged group.

The enlarged Bourne will have gross assets of pounds 135m and net assets of pounds 35.1m. Bourne was valued at pounds 8.34m prior to its shares being suspended at 97p earlier this month.

The Noe family's property interests - Britannia Property Investments and Laronstates - will cost Bourne pounds 600,000 cash and about pounds 9.7m in shares.

Bourne is also paying pounds 5.95m in cash and pounds 4m in shares for Dawnay, Day Properties, Stencroft Properties and Euroview Investments.

Cash for the two deals is being raised through a pounds 16.3m rights issue, made on a three- for-one basis at 65p a share.

Mr Noe and his wife are not taking up rights on their existing 5.3 million shares, housed in a company called Vasella Holdings.

The properties being bought from Mr Noe are predominantly retail, while the Dawnay ones are mainly offices.

Dawnay's portfolio includes an office block in Nottingham, whose main tenants are Boots and IBM, and another in Ipswich that is occupied by the Inland Revenue.

The whole portfolio is valued at pounds 48m and carries pounds 36.5m of debt.

The properties being bought from Mr Noe have been valued at pounds 44m and have debts of pounds 33.4m. They are based mainly in the South-east, are approximately 90 per cent freehold and are almost fully let.

After completion of the deals, Bourne will have pounds 105m of borrowings secured against assets worth pounds 135m.

Bourne intends to pay a 0.75p interim dividend.