23rd Feb 2024 11:51
(Alliance News) - Ground Rents Income Fund PLC on Friday said that it has sold its freehold ground rent interests in Bristol and Exeter for a combined value of GBP3.5 million.
Ground Rents is a London-based investor in long-term, income-generating assets across the UK.
According to the firm, the assets currently generate annual rent of GBP113,991 and are operated by Vita Student as purpose built student accommodation. The price represents a 4% premium to an independent valuation on September 30 of GBP3.3 million, and reflects a net initial yield of 3.1%.
Ground Rents said the disposal was in line with its change of strategy, approved by shareholders last year, to realise assets in a controlled, orderly and timely manner.
"Further disposals are planned, with significant work ongoing to improve the liquidity of the underlying portfolio, but uncertainty relating to leasehold reform means that transactional volumes are very low across the ground rent sector", it explained.
The proceeds will be used to repay debt.
Ground Rents Income Fund shares were flat at 32.55 pence each in London on Friday at noon.
By Holly Beveridge, Alliance News reporter
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