December 21, 2017 / 8:01 AM / a month ago

BRIEF-Mccarthy & Stone ‍Responds To Media Commentary On Ground Rents​

Dec 21 (Reuters) - Mccarthy & Stone Plc:

* ‍NOTES MEDIA COMMENTARY REGARDING PROPOSAL BY DEPARTMENT FOR COMMUNITIES AND LOCAL GOVERNMENT (DCLG) TO REDUCE GROUND RENTS ON NEW LONG LEASES TO ZERO​

* ‍MCCARTHY & STONE HAS MADE A CASE TO DCLG FOR EXEMPTION OF RETIREMENT HOUSING PROVIDERS FROM SUCH ACTION​‍

* RESPONSE TO MEDIA COMMENTARY ON GROUND RENTS​

* ‍HAS FULLY DISCLOSED ITS PRACTICE OF AGGREGATING AND SELLING FORWARD ITS FREEHOLD REVERSIONS​

* DOES NOT BUILD LEASEHOLD HOUSES AND DOES NOT EMPLOY TYPES OF ESCALATING GROUND RENTS WHICH HAVE BEEN CAUSE OF DCLG‘S REVIEW​

* ‍UNDERSTANDS THAT DCLG ARE CONSIDERING LIMITED EXEMPTIONS FROM THEIR PROPOSED CHANGES TO LEASEHOLD PRACTICES

* ‍IN FY18, PROFIT TO BE GENERATED BY FREEHOLD REVERSION SALES EXPECTED TO BE £33M, PROFIT STREAM EXPECTED TO INCREASE

* ‍IN SHORT TERM, IF UNABLE TO SECURE EXEMPTION FROM MEASURES, IT WILL SEEK TO EMPLOY STRATEGIES TO MITIGATE IMPACT ON PROFITABILITY OF CURRENT LAND BANK​ Source text for Eikon: Further company coverage:

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