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.
Since the last update on the sales programme, the Company has completed sales, or exchanged at auction, on a further 22 properties for an aggregate sale price of £2.6 million, representing a 3.7% discount to carrying value before sales costs. Many of these assets were fully or partly vacant (32% by area, in aggregate).
The sales costs associated with these disposals is estimated to be 4.2%, including agent's fees, legal fees and associated irrecoverable VAT relating to non VAT-elected properties or residential elements. This will result in an estimated 7.9% realised loss on sale for these 22 properties.
This brings total property sales, contracted or completed, under the sales strategy adopted in July 2013 to £115 million. Overall, sales to date have produced a gross premium (before sales costs) of 2.4% above the valuation at the time sale terms were agreed.
The Roadmap for Property Disposals, published in December 2016, targeted selling 125 assets worth an aggregate £20m over the 15-month period from October 2016 to the end of the 2017 calendar year.
The Board and Investment Adviser are pleased that the Company has now satisfied this component of the sales programme, having disposed of a total of 148 properties, for an aggregate gross sales price in excess of £20 million. The gross loss on these sales has been 1.9% below valuation.
We continue to make disposals via auction and private treaty, and will provide further guidance on the disposal programme in the Company's annual results announcement, scheduled for release during the week commencing 11th December.
Rupert Wallman, Fund Manager +44 20 7355 8800
Bill Heaney, Company Secretary +44 20 7355 8800