10 Nov 2010 14:00
10 November 2010
Invista European Real Estate Trust SICAF (the "Company" / "IERET")
SALE AND LETTINGS UPDATE
Invista European Real Estate Trust has exchanged contracts to sell a 6,910 sq ft (642 sq m) warehouse property in Entraigues sur la Sorgue, France, for a total consideration of €493,000.
The total sale price reflects a 14.7% premium to the Company's 30 June 2010 independent property valuation. Net proceeds from the sale will be used to pay down senior debt and, in accordance with the stated strategy, further de-leverage the Company.
In addition, the Company's earnings and income security have been enhanced in recent months through the active management of the French property portfolio.
A total of 451,436 sq ft (41,940 sq m) has been the subject of either a new letting and/or a lease re-negotiation, which over the next four months will result in an increase in like-for-like earnings of €421,000 per annum and a reduction in portfolio vacancy from 8.4% as at 30 September 2010 to 7.5%. There is a further 1,371,753 sq ft (127,440 sq m) of space under active negotiation, the completion of which would further improve portfolio income security and mitigate the risk of near-term vacancy.
Tony Smedley, Head of Continental European Funds at Invista Real Estate Investment Management, commented:
"The combination of identifying strategic disposal opportunities and improving the income performance of our investment portfolio is further evidence of Invista's proactive approach to asset management. Generating earnings growth and reducing portfolio vacancy are particularly pleasing outcomes in a market where occupational demand remains weak. The sale has been realised at a premium to valuation and enables the Company to further reduce its borrowings in line with current strategy."
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For further information, please contact:
Invista Real Estate
Tony Smedley/Chris Ludlam +44 20 7153 9369
Financial Dynamics
Dido Laurimore/Olivia Goodall +44 20 7831 3113