6 Apr 2018 07:00
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.
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.
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.
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.
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.
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.
[ENDS]
Enquiries:
Rupert Wallman, Fund Manager +44 20 7355 8800
Bill Heaney, Company Secretary +44 20 7355 8800