ING UK Real Estate Income Trust Ltd ("IRET" / "the Company"), a Guernsey-registered closed-ended investment company, today announced that it has exchanged contracts on the sale of an office property at Arena Court, Crown Lane, Maidenhead, for a total consideration of £9.68 million (11.25 million). Completion is due later this month.
The sale of the property follows a lease restructuring last year, which moved the tenant expiry from 2009 to 2019. The sale price reflects a yield of 9% and is in line with the March valuation.
Upon completion the Company will hold approximately £34 million within its securitized facility, which it will use to prepay the loan as agreed under the terms of the restructuring announced recently.
Michael Morris, Fund Manager said: "This disposal is part of the Company's ongoing strategy to dispose of assets where the business plan has been completed to provide further covenant headroom. Following the changes agreed to the Company's securitized loan facility in May this will further help to ensure the business maintains operational flexibility and supports a fully-covered dividend."