Local Shopping REIT (The) PLC Statement re Property Sales Programme (9072L)
24 July 2017 - 9:24PM
UK Regulatory
TIDMLSR
RNS Number : 9072L
Local Shopping REIT (The) PLC
24 July 2017
The Local Shopping REIT plc
Update on Property Sales Programme
The Board of The Local Shopping REIT plc ("the Company") is
pleased to provide the following update on progress with its
property sales programme.
During the round of auctions in July 2017, the Company exchanged
contracts for sale on 19 properties for an aggregate price of
GBP3.3 million, representing an 8.1% discount to carrying value
before sales costs. Since the last update on the property sales
programme, the Company has also completed or exchanged for sale on
a further 4 properties for an aggregate price of GBP0.56 million,
at a 3.4% discount to carrying value.
The sales costs associated with these disposals is estimated to
be 4.1%, including agent's fees, legal fees and associated
irrecoverable VAT relating to non-elected properties or residential
elements. This will result in an estimated 11.2% realised loss on
sale for these 23 properties.
This brings total property sales, contracted or completed, under
the sales strategy adopted in July 2013 to GBP112.4 million.
Overall, sales to date have produced a gross premium (before sales
costs) of 2.5% above the valuation at the time sale terms were
agreed.
Since the sales programme was accelerated (as announced in
December 2016), the Company has disposed of a total of 126
properties, for an aggregate gross sales price of GBP17.8 million.
The gross loss on these sales has been 1.8% below valuation.
The next full round of auctions is in October. During the
intervening period the Company will continue to execute the sale
programmes as set out in the Roadmap for Property Disposals
published in December 2016. The Board and Investment Adviser are
pleased that the Company continues to be well placed to meet the
timetable contained therein.
The Board confirms that in accordance with the Investment
Advisory Agreement entered into with the Company's Investment
Adviser, INTERNOS Global Investors Limited ("INTERNOS"), in July
2013, the base Asset Management Fee payable to INTERNOS will no
longer be subject to an annual minimum of GBP900,000 after 22 July
2017. From that date the base Asset Management Fee is calculated as
0.70% of Gross Asset Value (GAV), and will therefore decline as
assets are sold and debt is repaid. For the purpose of this
calculation, GAV was GBP77m at the time of the latest published
accounts (31 March 2017).
[ENDS]
Enquiries:
Rupert Wallman, Fund Manager +44 20 7355 8800
Bill Heaney, Company Secretary +44 20 7355 8800
This information is provided by RNS
The company news service from the London Stock Exchange
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