RNS Number : 6767I
ING UK Real Estate Income Trust Ltd
16 March 2010
 



ING UK Real Estate Income Trust Limited (IRET)

16 March 2010

 

IRET Announces Disposal of Slough Asset following lease restructuring

 

ING UK Real Estate Income Trust Ltd ("IRET" / "the Company"), a Guernsey registered closed-ended investment company, today announces that it has exchanged contracts for the sale of an office property at 171 Bath Road, Slough for a total consideration of GBP 8.91 million.

 

This single let office of circa 28,500 sq ft was originally acquired in 2005 and was initially subject to a tenant lease expiry in 2013.  In 2008 the Company restructured the lease improving the income maturity until 2023 at a rental income of circa GBP 733,000 per annum

 

The disposal price reflects a net initial yield of 7.8%, after a deduction to reflect an income top up or a capital value of circa GBP 310 per sq ft.  It is 19% ahead of the December 2009 valuation.

 

Completion is scheduled for 25th March 2010.

 

Michael Morris, Fund Manager said:

 

"We restructured the leasing arrangement on this asset in 2008, in a stronger occupational market and achieved a very good rental outcome.  With a much improved investment market we have now taken the opportunity to realise the proceeds at an attractive level providing cash resources for other opportunities."

 

For further information:

 

The Company Secretary

Northern Trust International Fund Administration Services (Guernsey) Limited

Trafalgar Court

Les Banques

St Peter Port

Guernsey

GY1 3QL

 

Tel:  01481 745529

Fax:  01481 745085

 

ING Real Estate Investment Management (UK) Limited

Helen Stott, 020 7767 5648, helen.stott@ingrealestate.co.uk

 

Financial Dynamics

Dido Laurimore/Laurence Jones, 020 7831 3113


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