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TGP Sells Melbourne Broadcast Centre

Listed property investment and development group Trafalgar Corporate Group (TGP), advises that it has today exchanged unconditional contracts with an Australian purchaser for the sale of the Melbourne Broadcast Centre, leased to the Seven Network, for $54.2 million. Trafalgar CEO Braith Williams said: “Successfully negotiating an extension of the remaining term of the Seven Network lease of the Melbourne Broadcast Centre from approximately 8 years to 15 years greatly assisted in generating strong interest from Australian and offshore buyers. This sale is consistent with the Group’s strategy of enhancing value by negotiating improvements to investment asset lease maturity profiles and then opportunistically offering the asset for sale. The sale price is approximately 11.8 per cent above the $48.5 million carrying value as at December 2009. Net proceeds from the sale will be used to repay bank debt, which will result in total Group debt being reduced to less than the previously stated target of $90 million and lowering the Group’s debt gearing to below 40 per cent.” A further market update will be provided when the Group releases its FY2010 annual results.