Local Shopping REIT (The) PLC Update on Property Sales Programme (9138F)
October 31 2018 - 10:43AM
UK Regulatory
TIDMLSR
RNS Number : 9138F
Local Shopping REIT (The) PLC
31 October 2018
FOR IMMEDIATE RELEASE
The Local Shopping REIT plc (the "Company")
Update on Property Sales Programme
31 October 2018
The board of The Local Shopping REIT plc ("the Board") is
pleased to provide the following update on progress with its
property sales programme.
Since the last update, the Company has sold or exchanged
contracts for sale on 15 properties for an aggregate price of
GBP3.2 million, representing a 15.6% discount to carrying value
before sales costs.
Of these, 3 properties were sold by private treaty transactions
which completed or exchanged for an aggregate sale price of GBP0.5
million, representing a 2.7% premium to carrying value before sales
costs.
The other 12 properties exchanged in auctions during October.
The aggregate sale price of these was GBP2.6 million, representing
an 18.5% discount to carrying value before sales costs.
The aggregate sales costs associated with all the disposals
described above is estimated to be circa 3.3% of the aggregate
sales price, resulting in an aggregate realised loss on sale of
circa 18.4%.
The Company also completed the sale of the portfolio of 15
assets which was announced to the market on 23 May 2018, for an
aggregate sales price of GBP9.05 million.
Currently, the company has GBP16.4 million in cash reserves and
sales of properties in respect of which contracts have been
exchanged are expected to generate a further GBP4.2 million in net
sales proceeds before the end of the calendar year.
Excluding properties on which sale contracts have been
exchanged, the remaining property portfolio comprises 27
properties. Of these, 8 are under offer for sale and 19 which will
continue to be marketed, both by private treaty and auction, during
the remainder of the calendar year, with the majority scheduled for
auction in December.
The aggregate of the current carrying values for the 27
properties described above is GBP9.9 million. However, there is no
certainty that these carrying values will be achieved on sale.
As indicated in the Company's announcement on 11 October 2018,
the Board has been examining the options for returning value to
shareholders. The Board has concluded that the optimum route for
achieving this is likely to be by way of a Members' Voluntary
Liquidation. The Board is therefore preparing to hold a General
Meeting during December 2018 to enable shareholders to vote on this
proposal, which the Board envisages would result in a substantial
capital distribution early in 2019. To this end, a circular and
notice of the General Meeting will be issued in due course.
The term "carrying value" used in this announcement refers to
the property values comprised in the Company's unaudited accounts
as at 31 March 2018.
Except as required by applicable law, the Company expressly
disclaims any obligations to update or revise such estimates to
reflect any change in expectations, new information, subsequent
events or otherwise.
This document is for information purposes only and is not an
offer to invest. All investments are subject to risk and past
performance is no guarantee of future returns. Prospective
investors are advised to seek expert legal, financial, tax and
other professional advice before making any investment
decisions.
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) No 596/2014 ("MAR"). Upon the
publication of this announcement, the inside information is now
considered to be in the public domain for the purposes of MAR.
The person responsible for making this announcement is William
Heaney, Company Secretary.
[ENDS]
Enquiries:
Rupert Wallman, Fund Manager, Principal Real Estate Europe +44 20 7355 8800
Bill Heaney, Company Secretary +44 20 7355 8800
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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