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Local Shopping agrees sale of four property portfolio
The Local Shopping REIT announced on Monday that it has exchanged contracts for the sale of a portfolio of four properties, for a cash consideration of £9.465m.
It said it anticipated that the sale would be completed over the next week, with the sale price representing a 5.8% discount to carrying value of the assets before sales costs.
The London-listed company also recently exchanged contracts for the sale of a portfolio of six small properties in Kingston upon Hull, for a consideration of £0.475m at a discount of 5.5% to carrying values.
ln addition to those portfolio transactions, since the last update on the sales programme in the company's annual results announcement, the board said it had completed sales or exchanged at auction on a further six properties for an aggregate sale price of £0.852m, representing a 9.8% premium to carrying value before sales costs.
"The sales costs associated with these disposals is estimated to be 1.4% of the prices agreed, including agent's fees, legal fees and associated irrecoverable VAT relating to non VAT-elected properties or residential elements," the board explained in its statement.
"This will result in an estimated 6.2% realised loss on sale for these 16 properties."
Net sales proceeds would be used in repayment of the banking facility, which would result in the loan balance falling to approximately £10.9m.
The board said the new sales brought total property sales, contracted or completed, under the company's realisation strategy to £126.6m, with 513 assets sold.
It said it now owned 151 properties, where it was yet to exchange contracts for sale, reflecting £42.7m in aggregate value.
"We continue to progress disposals via auctions, with 18 properties scheduled for auction before the end of March," the board added.
"A number of private treaty sales of individual properties are also in hand and the company will seek to dispose of further small portfolios of assets where appropriate."