Pemberstone buys property trusts

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The Independent Online
Pemberstone, the property group that came to the stock market in September, is paying pounds 11.7m for three property companies in a Business Expansion Scheme-inspired deal. The three were vehicles set up to take advantage of the Government's assured tenancy scheme to allow investment under the now-defunct BES.

Pemberstone is paying pounds 4.175m for the First Roman Property Trust, which owns sheltered developments and flats in north Wales and Cheshire, pounds 3.625m for the Second Roman Property Trust, owner of sheltered accommodation in Shropshire, Chester and Llandudno, and pounds 3.925m for the Third Roman Property Trust, with sheltered accommodation in north Wales and the Midlands.

Investors are being offered cash and shares, allowing them either to realise their investments or shelter their existing BES capital gains by taking up the shares.

The roll-over option is available because Pemberstone was itself a BES company. The new shares are being offered at 66p, which compares with the 60p at which the company raised pounds 6.75m through a placing when it came to the stock market in September.

Capital Ventures, a subsidiary of Pemberstone, sponsored the BES prospectuses for all the Roman companies. Since 1991 another subsidiary, CIM, has handled the financial and property management of the three businesses. Chesterton, the property agents, has valued the property assets at a combined value of pounds 11.2m.

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