Getech sells vacant part of head office for £0.65m

(Sharecast News) - Geotechnical specialist Getech announced the partial sale of its head office on Monday, after consolidating its operations during the Covid-19 pandemic. The AIM-traded company said its former head office consisted of three properties known as Kitson House, Nicholson House, and The Old Hall, situated at Elmete Hall near Leeds.

Getech said it owned two of the properties, namely Kitson House, a Grade 2 listed Georgian building spanning 5,726 square feet, and Nicholson House, a modern 6,996 square foot office building.

In response to cost-saving measures during the pandemic, the firm said it vacated Kitson House and consolidated its operations into Nicholson House.

Getech announced the successful sale of Kitson House on Monday, generating gross proceeds of £0.65m.

The net proceeds from the sale would be used to retire the bank debt associated with the property, which was currently under discussion with the bank.

The remaining funds would be retained by the company as working capital.

In contrast, Getech said it had retained full ownership of Nicholson House, an asset independently valued at £0.86m in December.

Approximately £0.35m of remaining debt would now be exclusively secured against Nicholson House.

The company said it was actively marketing Nicholson House for sale, with the intention of relocating to more suitable premises in central Leeds.

"We are pleased to have sold Kitson House and we will use the net proceeds to continue to develop the business," said acting chief executive officer Richard Bennett.

"Although the property market remains challenging, we shall continue to offer Nicholson House to the market and use the proceeds to relocate within Leeds to more appropriate offices closer to the university and its innovative community.

"This will enhance the business as we accelerate the development of the Globe geoscience platform."

Reporting by Josh White for Sharecast.com.