Industrials REIT Ltd - real estate investment trust focused on multi-let industrial properties - Exchanges contracts for sale of a health and leisure club for CHF12.5 million, about GBP10 million. Sales was a 17% discount to March 31 book value due to occupier's ability to pay rents during Covid.
"The company took a strategic decision to sell the asset rather than to invest time and resources into stabilising it and-or wait for the impact of the pandemic to pass in order to achieve a price in line with valuation," company says.
Notes sale leaves it with just one non-MLI asset, a portfolio of four care homes in Germany which is held in a joint venture, and means the company remains on track to complete its strategic move to being a fully focused MLI REIT by the end of the current financial year.
Separately, acquires Harmony Court in Glasgow, Scotland for GBP5.3 million, reflecting a net initial yield of 5.6% and a capital value of GBP109 per square foot. The 48,169 square foot, 10-unit industrial estate is 100% let and generates a total annual passing rent of GBP311,051, which equates to an average rent of GBP6.46 per square foot.
Current stock price: 182.40 pence in London; ZAR38.08 in Johannesburg
Year-to-date change: up 34% in London; up 5.6% in Johannesburg
By Paul McGowan; paulmcgowan@alliancenews.com
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