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 auctions in May 2017, the Company exchanged contracts for sale on 8 properties for an aggregate price of £0.82 million, representing a 4.0% discount to carrying value before sales costs. In addition, the Company has completed or exchanged for sale on 2 further properties for an aggregate price of £0.22 million, at a 1.6% premium to carrying value.
The sales costs associated with these disposals is estimated to be 6.9%, including agent's fees, legal fees and associated irrecoverable VAT relating to non-elected properties or residential elements. This will result in an estimated 9.6% realised loss on sale for these 10 properties.
This brings total property sales, contracted or completed, under the sales strategy adopted in July 2013 to £107 million. Overall, sales to date have produced a gross premium (before sales costs) of 3.0% above the valuation at the time sale terms were agreed.
Since the sales programme was accelerated (as announced in December 2016), the Company has disposed of a total of 87 properties, for an aggregate gross sales price of £12.4 million. The gross premium on these sales has been 0.1% above valuation.
The May 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