Kenmore European Industrial Fund generates further sales (NO/BE)

Kenmore European Industrial Fund today announces the sale of three assets for a total consideration of €3.19 million.

The Fund has sold Grini Næringspark 5, Bærum, Norway to Start Holding AS for NOK 22 million (approx. €2.49 million) with an additional sum of NOK 1 million payable after 22 months. The sale price reflects a net initial yield of 9.88%.

Grini Næringspark 5 comprises 2,386 m² of warehouse, office and showroom space. The property was recently let on a 10-year lease to Only the Brave at a rent of NOK 2.44 million/year.

In the second transaction the Fund has sold two light industrial units in the town of Houthalen, to the tenant of one of the units, Esbi, for a total consideration of €700,000 net.

The units provide a total area of 1,430 m² and form part of a larger estate owned by KEIF comprising a total of 7,305 m².

Rob Brook, Managing Director of Kenmore Financial Services Limited, commented: "Both these transactions demonstrate the opportunities for the Fund to realise value following asset management activity. With regard to the Norway asset we had recently secured a new tenant and optimised the asset management initiatives for the property and there is now little further upside to be generated on behalf of the Fund. The Belgium assets are in demand from owner occupiers and we expect to be able to make other similar sales in due course.

"The proceeds from these transactions will be used to further de-gear KEIF's portfolio, inline with its de-risking strategy."

Haavind AS advised KEIF on the disposal of Grini Næringspark 5 and Catella acted on behalf of the purchaser.

Source: FD

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