LSR.L Regulatory News (LSR)

23 Aug 2007 10:32

Local Shopping REIT (The) PLC23 August 2007 23 August 2007 The Local Shopping REIT plc announces first acquisitions since its April flotation (LONDON, 23 August 2007) - The Local Shopping REIT plc ("LSR"/"the Company"), aUK Real Estate Investment Trust focused on investments in local shopping assets,is delighted to announce its first acquisitions since its Admission to tradingon 2 May 2007, when it successfully completed an oversubscribed placing andoffer for subscription, raising £160 million. Portfolio acquisition LSR has agreed to acquire the entire share capital of Gilfin Property HoldingsLimited ("Gilfin") for £12.85 million. Gilfin is a privately owned propertycompany with a portfolio of 28 properties which have been valued at £14.6million. Gilfin has net liabilities of £0.3 million and £1 million ofassociated debt which will be repaid on the completion of the acquisition.Approximately half the portfolio, by value, is located in Scotland, while therest is in south west London and the surrounding area. 50% of the consideration will be satisfied in cash, with the remaining 50%settled through the issue of 3,897,246 LSR shares. The portfolio produces a rentof £967,038 per annum which is anticipated to rise to £1,044,268 per annum whenfully let at a market rent. Completion of the acquisition of the shares in Gilfin is conditional onadmission of the LSR shares being issued to the current shareholders of Gilfin.Application has been made for the 3,897,246 shares to be admitted to the UKOfficial List and to trading on the London Stock Exchange on 29 August 2007.The shares will rank pari passu with the Company's issued ordinary shares. Single assets In addition, the Company is pleased to confirm that, in line with the businessplan set out in its Admission Document, it has acquired 79 additional propertiesfor a total consideration of £20.7 million. The blended yield of these units is7.38%. As a result of these purchases, the Company now has a portfolio of some560 assets, comprising over 1,700 letting units. Mike Riley, LSR's Joint Chief Executive Officer, commented: "As stated in our Prospectus, we anticipated that our REIT status would enableus to offer competitive prices and a tax efficient solution to the owners ofproperty held in private corporate structures with an unrealised capital gainsposition. The acquisition of Gilfin is, we anticipate, the first of a number ofthis type of transactions that we will be able to undertake which offer not onlyan attractive option for the owners of private property companies, but also ahighly effective way for LSR to grow its portfolio of assets at an attractiveprice." Nick Gregory, LSR's Joint Chief Executive, added: "Gilfin's properties are a close match for our existing portfolio. Our hands-onapproach, combined with our management expertise, means we are well placed tounlock further additional value, in particular through the letting of the vacantunits in Scotland. The English properties are good quality, well-located unitsin affluent areas and offer above average growth prospects." "We look forward to commencing our active asset management programme for boththe Gilfin portfolio and the single assets we have acquired to enhance theircapital and income value for our shareholders." For more information please contact: The Local Shopping REIT plc Tel: 020 7187 4444Mike Riley/Nick Gregory Financial Dynamics Tel: 020 7831 3113Stephanie Highett/Lauren Mills/Jamie Robertson About the Local Shopping REIT The Local Shopping REIT plc ("LSR") is the first specialist start-up Real EstateInvestment Trust ("REIT") to launch in the UK. Aimed solely at local shopping assets in non-prime urban areas, the Companyinvests in neighbourhood and convenience retail assets, heralding thefoundations of a new institutional investment class. The Company has aportfolio comprising 560 assets, with over 1,700 letting units, which was valuedat £207.7 million (at 28 Mar 2007) with a further £20.7 million of assetsacquired since then. The Company is aiming to become the market leader in the local shopping marketin the UK. In building its portfolio, the Company principally targetsneighbourhood and specialist property in urban conurbations. Typical of theportfolio are shops in local shopping parades and neighbourhood venues forconvenience or 'top-up' shopping. For further information on LSR, please visit www.thelocalshoppingreit.co.uk. For further information on REITS, please visit www.reita.org. This information is provided by RNS The company news service from the London Stock Exchange