Kenmore European Industrial Fund completes further Belgium asset sales (BE)

Kenmore European Industrial Fund is pleased to announce that it has sold its industrial scheme, Glasstraat in Antwerp, to Gecodam for a net price of €7.1 million, reflecting a net initial yield of 8.72%. The asset is currently 90% let.

A 12-month rental guarantee was granted to the purchaser to cover voids and arrears for a maximum amount of €240,000. The net sale price, including a reduction of 100% of the guarantee, is 2.6% ahead of June 2009 valuation.

Located in Merksem, Antwerp, the 22-unit light industrial estate comprises 169,200 ft² (15,700 m²). KEIF purchased the property in December 2006 for a gross price of €6.52 million, when it was 60% let, and subsequently concluded a full programme of asset management, successfully letting the majority of the remaining space.

This latest KEIF asset sale follows the recent disposal of a 9,800-ft² (910-m²) unit at Houthalen for a net price of €445,000.

As with the previous sale at Houthalen, announced in May 2009, the unit was sold to the incumbent tenant, in line with KEIF's strategy to sell Houthalen on a unit-by-unit basis.

Rob Brook, Managing Director of Kenmore Financial Services Limited, commented: "The completion of the disposal at Merksem concludes a highly successful asset management strategy in which Kenmore purchased this prime-located industrial asset, secured tenants, renegotiated lease terms and eliminated voids to maximise upon its annual income stream and returned it to the market as an attractive and stable long-term investment.

"Not only has this sale made a profit-to-gross purchase price and valuation, but it has fulfilled the Fund's current strategy to de-gear its Europe-wide portfolio and focus its energy upon de-risking its existing investments and commitments."

The investment department of King Sturge Belgium advised KEIF exclusively for this sale.

Source: FD

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