Caledonia sells the Sloane Club

Caledonia sells the Sloane Club – Caledonia Investments has today sold its 100% interest in The Sloane Club, the private members club located in the heart of Chelsea, London, to Sloane Investment Limited, a special purpose vehicle jointly owned by JK Chelsea Holdings Limited, an affiliate of the Queensway Group, and Clearbell Property Partners III LP, a real estate fund advised by Clearbell Capital LLP.

The headline enterprise value agreed for the Club was GBP80.6m, which after fees and other transaction costs, has delivered net proceeds of GBP80.2m in cash to Caledonia, GBP3.5m of which was received as a pre-sale distribution of trading profit.  The cash proceeds will be held on deposit for future investment.

The carrying value of the Club in Caledonia’s audited balance sheet as at 31 March 2017, and similarly in the Company’s net assets used to calculate its unaudited diluted net asset value per share (“NAV per share”) as at 30 September 2017 of 3259p (announced on 6 October 2017), was GBP61.4m.  Adjusted for the impact of the sale of the Club, Caledonia’s NAV per share as at 30 September 2017 would have been 3290p.  For the financial year to 31 March 2017, the Club generated total pre-tax profits of GBP2.8m and paid Caledonia a total of GBP1.8m in dividends and interest.

The Club was originally acquired by Caledonia in 1991. Under Caledonia’s ownership, the Club has undertaken a significant extension as well as upgrading many of its facilities and increasing the number of rooms available for members. The Club has been run for most of this period by Tony Murkett, Managing Director, who will remain with the Club following the sale.

Both Queensway and Clearbell are supportive of the Club’s long term strategy and intend to continue, with the incumbent management team, to upgrade and improve the Club’s facilities.

Commenting on the sale, Duncan Johnson, Caledonia’s Head of Unquoted Investments, said: “With Caledonia’s support for over a quarter of a century, The Sloane Club has grown to be a unique asset in the heart of London’s Chelsea and exemplifies Caledonia’s long term approach to investing.  We are delighted to have identified new owners for the Club who share a similar investment ethos to Caledonia’s.  We wish Tony Murkett and his team continuing success in the future.”

CLDN : Caledonia sells the Sloane Club

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