24th May 2018 16:07
LONDON (Alliance News) - The Local Shopping REIT PLC said Thursday that it has sold a portfolio of seven properties for GBP3.74 million cash to an undisclosed company.
The real estate investment trust also has agreed with the same purchaser for the sale of a further eight properties, subject to pre-emption rights of residential tenants under Landlord & Tenant Act.
Local Shopping REIT expects to proceed to exchange contracts for the sale of the eight properties either to this purchaser or to those tenants who elect to exercise their pre-emption rights at the expiry of the statutory notice period.
The total sale price of the eight properties is expected to be around GBP5.3 million.
The total consideration for the sale of the 15 properties of GBP9.05 million is expected to reflect a 2.6% discount to the carrying value of the assets. The sales costs associated with the disposals are estimated to be 1.6%, resulting in a 4.2% realised loss on sale for these properties.
Since early April, the company has sold 18 properties for GBP2.78 million, representing a 2.4% premium to carrying value. The sales costs associated with the disposals are estimated to be 4.3%, resulting in a 2.0% realised loss.
Net sales proceeds from the disposals will be used by Local Shopping REIT to repay its loan facility, the balance of which is expected to be eliminated by June end.
The stock was trading 1.2% higher at 32.37 pence each late Thursday.
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