Goldmoney Inc. Announces Second Property Acquisition in the UK

Rhea-AI Summary

Goldmoney Inc. completes second property acquisition in the UK

Positive

• Goldmoney Properties acquires Wales Millennium Centre Phase II for £17.2 million
• Building is majority let to BBC with net rental income of £1.6 million per annum
• Goldmoney now owns two landmark buildings totaling over 280,000 square feet

Negative

• None.

Toronto, Ontario--(Newsfile Corp. - October 5, 2023) - Goldmoney Inc. (TSX: XAU) (US: XAUMF) ("Goldmoney" or the "Company"), is pleased to report that further to its press release of June 13, 2023 announcing the Company's real assets investment strategy, the Company's subsidiary Goldmoney Properties Ltd. has completed its second property acquisition in the UK.

On October 6, 2023, Goldmoney Properties completed the acquisition of Wales Millennium Centre Phase II, also known as BBC Hoddinott Hall and Offices in Cardiff, Wales. The asset is a landmark 62,116 square foot gross internal area (GIA) building which forms a part of the iconic Wales Millennium Centre in Cardiff Bay. Phase II comprises the world-class BBC Hoddinott Hall, home to the National Orchestra of Wales which seats up to 350 people, the Grace Williams Studio which is a state-of-the-art recording studio that can hold up to 60 people, and a 16,114 square foot Class A office building. Phase II was built in 2009 by Sir Robert McAlpine at a cost of over £18 million at the time.

Goldmoney Properties has acquired the building from Aviva Investors Lime Fund for consideration of £17.2 million (approximately CAD $28.7 million) in a transaction that was financed by Barclays PLC at an loan-to-value (LTV) ratio of approximately 44%. The financing rate is a floating rate of Sterling Overnight Interbank Average (SONIA, as set by the Bank of England) + 1.85% and is non-recourse to Goldmoney Properties. The building is majority let to the British Broadcasting Corporation (BBC) under a full repairing and insurance lease producing £1.6 million (approximately CAD $2.62 million) of net rental income per annum. The remaining term on the lease is 10 years through September 2033, with uncapped annual rent increases indexed to the Retail Price Index (RPI). Following this acquisition, Goldmoney has a working capital position of approximately CAD $34 million consisting of cash, precious metals, and precious metal backed on-demand loans (unaudited).

Statement from Roy Sebag, Founder and CEO of Goldmoney Inc.

"We are pleased to have acquired our second building from Aviva, one of the premier institutional property investors. The BBC Hoddinott Hall is a world-class asset where some of the most beautiful music in the world comes to life. We are honored to be the new owners of this cultural landmark. Goldmoney Properties now owns two landmark buildings totaling over 280,000 square feet which produce circa $7 million of net rental income per annum which is indexed to inflation. We remain focused on growing our property investment business. The strength of our balance sheet, health of our precious metals businesses, and new cash flow streams provides us with a unique opportunity to further capitalise on the generational shift in interest rates by acquiring world-class real assets."

About Goldmoney Inc.

Founded in 2001, Goldmoney (TSX: XAU) is a TSX listed company invested in the real economy. The leading custodians and traders of precious metals, Goldmoney Inc. also owns and operates businesses in jewelry manufacturing, and property investment. For more information about Goldmoney, visit goldmoney.com.

Media and Investor Relations inquiries:

Mark Olson
Chief Financial Officer
Goldmoney Inc.
+1 647 250 7098

Forward-Looking Statements

This news release contains or refers to certain forward-looking information. Forward-looking information can often be identified by forward-looking words such as "anticipate", "believe", "expect", "plan", "intend", "estimate", "may", "potential" and "will" or similar words suggesting future outcomes, or other expectations, beliefs, plans, objectives, assumptions, intentions or statements about future events or performance. All information other than information regarding historical fact, which addresses activities, events or developments that the Goldmoney Inc. believes, expects or anticipates will or may occur in the future, is forward-looking information. Forward-looking information does not constitute historical fact but reflects the current expectations the Company regarding future results or events based on information that is currently available. By their nature, forward-looking statements involve numerous assumptions, known and unknown risks and uncertainties, both general and specific, that contribute to the possibility that the predictions, forecasts, projections and other forward-looking information will not occur. Such forward-looking information in this release speak only as of the date hereof.

Forward-looking information in this release includes, but is not limited to, statements with respect to: the expected value and return on investment in the Company's real estate acquisitions, and the properties described herein (the "Properties") in particular, the ability of the current tenants on the Properties to meet their rental obligations, the future state of the Properties and the environment surrounding it, the ability of the Company to maintain and service the indebtedness incurred to acquire the Properties, including any future refinancings, and the ability of the Company to return value from the Properties to shareholders. This forward-looking information is based on reasonable assumptions and estimates of management of the Company at the time it was made, and involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information. Such factors include, among others: the global inflationary environment and its effect on real estate prices, interest rates, and the Properties in particular; the ability of the Company to integrate the Properties into its current operations; the anticipated value and income growth in connection with the Properties; the ability to maintain current and procure future commercial tenants for the Properties; the surrounding environment and infrastructure of the Properties remaining suitable; the anticipated variable interest rate for the loan used to finance the acquisition of the Properties, and the effect on this interest rate from the SONIA as set by the Bank of England; the Company's operating history; history of operating losses; future capital needs and uncertainty of additional financing; fluctuations in the market price of the Company's common shares; the effect of government regulation and compliance on the Company and the industry; legal and regulatory change and uncertainty; jurisdictional factors associated with international operations; foreign restrictions on the Company's operations; product development and rapid technological change; dependence on technical infrastructure; protection of intellectual property; use and storage of personal information and compliance with privacy laws; network security risks; risk of system failure or inadequacy; the Company's ability to manage rapid growth; competition; the ability to identify opportunities for growth internally and through acquisitions and strategic relationships on terms which are economic or at all; effectiveness of the Company's risk management and internal controls; use of the Company's services for improper or illegal purposes; uninsured, uninsurable, and underinsured losses; theft & risk of physical harm to personnel; precious metal trading risks; and volatility of precious metals prices & public interest in precious metals investment; and those risks set out in the Company's most recently filed annual information form, available on SEDAR+ at www.sedarplus.ca. Although the Company has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. The Company undertakes no obligation to update or revise any forward-looking information, except as required by law.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/183077

FAQ

What is the acquisition made by Goldmoney Properties?

Goldmoney Properties has acquired Wales Millennium Centre Phase II, also known as BBC Hoddinott Hall and Offices in Cardiff, Wales.

How much did Goldmoney Properties pay for the acquisition?

Goldmoney Properties paid £17.2 million (approximately CAD $28.7 million) for the acquisition.

Who is the building let to?

The building is majority let to the British Broadcasting Corporation (BBC).

What is the net rental income of the building?

The building produces £1.6 million (approximately CAD $2.62 million) of net rental income per annum.

How many landmark buildings does Goldmoney now own?

Goldmoney now owns two landmark buildings totaling over 280,000 square feet.