31st Oct 2019 11:24
(Alliance News) - UK Commercial Property REIT Ltd on Thursday reported a quarter-on-quarter net asset value fall and said it has entered into an agreement to sell its last shopping centre asset for GBP23.4 million.
Net asset value at September 30 stood at 90.5 pence per share, the real estate investment trust said, down 2.9% from 93.2p at the end of June.
In September, the trust completed the GBP10.3 million disposal of a retail unit in Market Street, one of Manchester's principal high streets. The asset, let to sportswear firm Adidas AG, was sold in line with its June valuation.
The agreement to sell The Parade shopping centre located in Swindon, Wiltshire for GBP23.4 million, occurred in October, after the end of the third-quarter.
UK Commercial Property said: "The sales will provide the company with additional firepower for reinvestment into assets that offer more sustainable income and are in line with the company's strategy of reducing exposure to assets that have significant future return risk."
Chair Andrew Wilson said: "Significant further progress has been made to the company's ongoing strategy of reducing its exposure to retail. The sale of two retail assets has further reduced the company's weighting to this sector which is already significantly below that of the benchmark. The portfolio also remains highly reversionary as evidenced by the leasing activity undertaken during the period which locked in some of the rental growth that we expect to be a key driver of future income and shareholder returns."
UK Commercial Property said that Ken McCullagh, currently an independent director, will replace Wilson as chair when the latter retires from the board at the end of the year.
The trust also announced the appointment Chris Fry to its board as a non-executive director. Fry is currently the chief executive of privately-owned property firm Kingsbridge Estates Ltd.
Shares in UK Commercial Property were 0.5% lower at 88.38 pence each in London on Thursday morning.
By Eric Cunha; [email protected]
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