ING UK Real Estate Income Trust Ltd
03 April 2008
ING UK Real Estate Income Trust Limited
3 April 2008
ING UK Real Estate Income Trust announces GBP 34.2 million of successful
ING UK Real Estate Income Trust Limited ("IRET" / "the Company"), a Guernsey
registered closed-ended investment company, today announces the sale of two
properties for a total consideration of GBP 34.2 million, underlining the
success of its disposal programme.
IRET announces the exchange of contracts on retail property at 36 - 42 Frodsham
Street and Frodsham Square, Chester for GBP 32 million. The property, which
comprises a Tesco Supermarket and adjoining retail units, has been sold to Tesco
Stores Limited. The sale price reflects a net initial yield of 4.84%.
The property comprises a total of 8,441 sq m (90,856 sq ft) of retail space and
includes six small retail units within an adjoining retail precinct.
IRET has also completed the sale of Globe House, Madeira Road, West Byfleet for
GBP 2.2 million reflecting a net initial yield of 7.8%. Globe House, which was
the smallest asset in the portfolio, provided 893 sq m (9,614 sq ft) of freehold
office space multi-let on three separate leases.
The two sales reflect a premium of 10.12% ahead of the December 2007 valuation.
Commenting, Michael Morris, Fund Manager, said:
"We have successfully completed our asset management initiatives and
significantly increased the income on these assets by over GBP 560,000 since
The disposal of the Tesco Supermarket to a special purchaser provided the
Company with a good opportunity to realise an attractive sale price. Globe House
is another example of disposing of one of the non-core assets.
In common with other recent disposals, these transactions will in due course
enable us to reduce the Company's non securitised borrowings and is consistent
with our model to maximise income and improve our dividend cover."
For further information:
The Company Secretary
Northern Trust International Fund Administration Services (Guernsey) Limited
St Peter Port
Tel: 01481 745439
Fax: 01481 745085
ING Real Estate Investment Management (UK) Limited
Helen Stott, 020 7767 5648 firstname.lastname@example.org
Dido Laurimore/Laurence Jones, 020 7831 3113
This information is provided by RNS
The company news service from the London Stock Exchange