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.
During the round of auctions in March 2017, the Company sold 15 properties for an aggregate price of £3.64 million, representing a 9.0% premium to carrying value before sales costs, which are estimated to be 5.1% of the prices achieved. Sales costs include agent's fees, legal fees and associated irrecoverable VAT relating to non-elected properties or residential elements.
As detailed in the annual results announcement released on 12 December 2016, the Company's sales programme is currently focussed on smaller properties and those that are management intensive or geographically dispersed. The Company also stated its intentions to sell a limited volume (£5m) of higher quality, lower-yielding properties. The auction sales during March were primarily of this nature.
This brings total property sales, contacted or completed, under the sales strategy adopted in July 2013 to £104.08 million, 62% of the portfolio value at that time. Overall, sales to date have produced a premium to valuation (at the time sale terms were agreed) of 3.0%.
The March sales are in line with the Board's and Investment Adviser's expectations and the directors are pleased that the Company continues to be well placed to meet the timetable contained in the Roadmap for Property Disposals set out in the annual results statement.
Rupert Wallman, Fund Manager +44 20 7355 8800
Bill Heaney, Company Secretary +44 20 7355 8800