ING UK Real Estate Income Trust Ltd ("IRET" / "the Company"), a Guernsey-registered closed-ended investment company, has announced that it has exchanged contracts on the sale of two assets for a total consideration of £14.1 million reflecting a 1% discount on its March valuation.
IRET has exchanged contracts to sell a distribution unit at Ravensbank Business Park, Redditch for £7.3 mln.
In one of the largest occupier led transactions in the North West M25 office market, IRET has exchanged contracts to sell a vacant office building in Watford to an owner occupier. The transaction, which reduces the void rate within the portfolio from 9% to 7% was achieved following the grant of planning permission to reconfigure access to the property.
In a separate transaction IRET has exchanged contracts to sell a distribution unit at Ravensbank Business Park, Redditch. The unit, leased to SP Group Ltd until 2021 was sold for £7.3 million.
Michael Morris, Fund Manager, commented: "In the current market to achieve an owner occupier disposal, of our largest void within the portfolio, is a real achievement.
"The proceeds from these disposals will provide the Company with further covenant headroom, increased operational flexibility and enable IRET to undertake further projects which will provide opportunities to enhance both the income and capital position of a number of other assets within the portfolio."