Invista European Real Estate Trust has completed the sale of a 16,010-m² warehouse property in Grodzisk, Poland to NGBI Private Equity Limited for a total consideration of 7.0 million. The price reflects a 2.9% premium to the company's March 31, 2011 independent property valuation.
Further to this transaction and as referred to in the company's half-year results on May 26, 2011, the company has also exchanged contracts to sell 27 million of properties.
The net proceeds from the sale will be used to reduce borrowings and debt service costs, further de-leveraging the company.
Tony Smedley, Head of Continental European Funds at Invista Real Estate Investment Management, commented: "This disposal is in line with our strategy to realise non-core investments and increase the Company's focus on core Western European markets, particularly France and Germany where the portfolio is mainly located.
"The completion of asset management initiatives enabled the sale to be completed at a premium to the prevailing valuation and facilitates further de-leveraging of the company."