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
St Peter Port
Tel: 01481 745529
Fax: 01481 745085
ING Real Estate Investment Management (UK) Limited
Helen Stott, 020 7767 5648, email@example.com
Dido Laurimore/Laurence Jones, 020 7831 3113