U City asset sales proceed ahead of schedule

Wednesday 09 June 2021 16:16
U City today announced the completion of the sale of one of its UK office buildings, "Underwood Street" in London. This disposition is part of a balance sheet strengthening exercise approved by its shareholders on 31 March 2021. Aside from the capital increase process which completed on schedule at the end of May and raised a further THB 15.7bn for the Company, U City is selling the underperforming assets in its portfolio, as it moves swiftly to steer the company back to profitability.
U City asset sales proceed ahead of schedule

Ms. Soraya Satiangoset, U City acting Chief Executive Officer explained, "Underwood Street is a good asset in a good location; however, the timing of COVID pandemic coincided with our initial marketing and leasing of the building. This means we would have to endure several more quarters of losses before the building is sufficiently occupied and profitable.  Our shareholders have approved decisions that will enable us to turnaround to a profit more quickly".

The sale will generate a further THB 356.7mn of sales proceeds to strengthen the balance sheet and is part of a broader THB 4.4bn asset disposal program.

U City now has a strengthened capital base with a total of 31.8bn shares, comprising 26.2bn preferred shares and 5.6bn ordinary shares. The preferred shares are entitled to a preferred dividend of up to THB 1.1 per preferred share before ordinary shareholders get any dividend.

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