CORRECT (April 03): KCR Residential Buys London Freehold Properties

4th Apr 2018 11:36

(Correcting that the properties are located not only in Harrow but also in Ladbroke Grove)

LONDON (Alliance News) - KCR Residential REIT PLC said on Tuesday that it exchanged binding contracts to acquire three freehold blocks for GBP5.4 million excluding costs, paid in cash.

The trust said that it intends to buy the entire share capital of the special purpose vehicle which owns the properties and expects to complete the transaction by June 29.

The freehold properties, located in Ladbroke Grove and Harrow, are fully let by private tenants and generate a rental income of over GBP250,000. KCR Residential said that the average unit value of the purchased properties is GBP314,700 and average monthly rent is about GBP1,250.

KCR Residential REIT Chief Executive Officer Dominic White said: "This is a highly accretive transaction for KCR that has a significant positive impact on revenue. We estimate that net asset value per share will increase by more than 20 per cent as a result of the acquisition."

KCR shares were trading 7.4% lower at 63.00 pence per share on Wednesday.

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Related Shares:

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