6 Apr 2018 07:00
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The Local Shopping REIT plc
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Update on Property Sales Programme
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The Board of The Local Shopping REIT plc ("the Company") is pleased to provide the following update on progress with its property sales programme.
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Since the last update, the Company has sold 18 properties for an aggregate price of £4.6 million, representing a 1.7% discount to carrying value. The sales costs associated with these disposals are estimated to be 3.3%, including agent's fees, legal fees and associated irrecoverable VAT relating to non VAT-elected properties or residential elements. This is estimated to result in a 5.0% realised loss on sale for these 18 properties.
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Three of the properties sold were private treaty transactions which completed for an aggregate sale price of £420,000, representing a 2.4% premium to carrying value before sales costs.
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The other 15 sales were disposed during the March round of auctions via 18 individual auction lots. The aggregate sale price of these was £4.2 million representing a 2.2% discount to carrying value before sales costs.
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The proceeds of these sales, net of execution costs, will be applied to reducing the Company's loan finance, which currently stands at £9.9m.
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Furthermore, the Company continues to progress a number of private treaty sales, and has agreed terms, subject to contract, on 32 properties (total book value £11.4 million), including one significant portfolio sale.
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[ENDS]
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Enquiries:
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Rupert Wallman, Fund Manager +44 20 7355 8800
Bill Heaney, Company Secretary +44 20 7355 8800
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