Local Shopping REIT (The) PLC Update on Property Sales Programme (1038P)
May 24 2018 - 2:01AM
UK Regulatory
TIDMLSR
RNS Number : 1038P
Local Shopping REIT (The) PLC
24 May 2018
The Local Shopping REIT plc
Update on Property Sales Programme
The Board of The Local Shopping REIT plc ("the Company") is
pleased to announce that it has exchanged contracts for the sale of
a portfolio of 7 properties, for a cash consideration of GBP3.74
million. We have also agreed terms with the same purchaser for the
sale of a further 8 properties, subject to pre-emption rights of
residential tenants under section 5 of the Landlord and Tenant Act
1987. The statutory notices to qualifying tenants will be served
shortly and the Company expects to proceed to exchange contracts
for the sale of these 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. It is expected that the
total sale price for these 8 properties will be GBP5.31m.
The aggregate consideration for the sales 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 these
disposals are estimated to be 1.6%, including agent's fees, legal
fees (including the service of statutory notices) and associated
irrecoverable VAT relating to non-VAT elected properties or
residential elements. This is estimated to result in a 4.2%
realised loss on sale for these properties.
In addition to these portfolio transactions, since the last
update on the sales programme on 6 April 2018, the Company has sold
18 properties for an aggregate price of GBP2.78 million,
representing a 2.4% premium to carrying value. The sales costs
associated with these disposals are estimated to be 4.3%, resulting
in a 2.0% realised loss on sale for these properties.
The net sales proceeds for these sales will be used in repayment
of the banking facility, the balance of which is expected to be
eliminated by 30 June 2018.
The transactions described above bring total property sales,
contracted or completed, under the Company's realisation strategy
to GBP137.1 million, with 551 assets sold. In addition to which are
the 8 anticipated property sales, totalling GBP5.3 million, that
are subject to section 5 pre-emption rights as described above.
We continue to work on disposals, with approximately 40
properties scheduled for auction before the end of the current
financial year. A number of private treaty sales, including small
portfolios, are also in hand.
[ENDS]
Enquiries:
Rupert Wallman, Fund Manager +44 20 7355 8800
Bill Heaney, Company Secretary +44 20 7355 8800
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END
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