Tamar European Industrial Fund has announced that it has sold an asset in Trondheim, Norway, to an owner-occupier for a total consideration of £7.51 million (approx. 8.6 million/NOK 68 million), reflecting a net initial yield of 8.6%. The sale price was close to the latest Fund valuation as at December 2010.
The asset, located just outside Trondheim, comprises a total of six buildings providing 6,568 m² of office and warehouse space. The buildings are currently fully let, but due to undergo a significant number of lease expiries within the next 12 months. The purchaser, Grunnarbeid, is the main tenant at the property, accounting for over 50% of the total rent.
Rob Brook, Managing Director of Tamar Financial Services Ltd, Investment Manager to TEIF, commented: "This represents another successful disposal for TEIF of an asset with limited potential for income growth. The asset is in a non-core location for the Fund and there was a considerable risk of vacancy in the short term. It is therefore very pleasing to be able to sell the asset at a price very close to valuation."
Catella Corporate Finance advised TEIF on the disposal.