Pennant International sells former head office for £2.1 million

Pennant FI

Cheltenham-based training tech provider Pennant International Group has announced the sale of Pennant Court, its former head office.

The sale is the result of a review commissioned earlier this year by the group’s board. With the group increasingly focusing on software and reducing its reliance on resource-intensive hardware engineering activities, its space requirements have reduced.

The site is comprised of a single unit, subdivided between a warehouse and offices, covering over 19,000 square feet of aggregate floor space.

Contracts have now been exchanged on the site following an accepted offer in May. The site is being acquired by Cheltenham’s Pripco Limited. No leaseback has been arranged, so Pennant will vacate the site entirely upon completion, which is scheduled for 19 August.

The £2.1 million price will be payable in full upon completion. After transaction expenses the sale is expected to achieve a profit of £0.2 million. Proceeds of the sale will be used to reduce the Group’s overdraft, which is currently £4.2 million. The group expects its new overdraft to be around £2.1 million.

The sale is also expected to save the group around £200,000 per year in running costs, business rates and other expenses. The group is also planning to vacate its Stevenage office, and is currently negotiating to surrender another leased premises, with its retained Cheltenham facilities sufficient to serve its current order book.

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