Tamar European Industrial Fund announces that it has sold an asset in Finland as well as five units at a business park in Belgium.
The asset in Finland comprises a mixed office and light industrial building of 775 m² located at Nittylanpolku 5, Helsinki. The property is let entirely to a single tenant on a lease expiring in July 2013. The sale price of 392,000 is the same as the latest Fund valuation as at September 2011 and reflects an initial yield of 11.6%. The purchaser is a private investor.
The Belgian sale comprises a partial disposal of a 7,032-m² business park in Sint Pieters Leeuw, a suburb located 3 km to the southwest of Brussels.
The park is arranged as 11 units, providing light industrial and office space. Given the good levels of demand from owner occupiers for this type of unit, a decision was made to sell the park unit-by-unit.
A total of five units, representing 47% of the total asset by area, have been sold in four separate transactions for a total consideration of 2,533,600, representing a significant premium to the September 2011 valuation. Marketing of the remaining units continues.
Rob Brook, Managing Director of Tamar Financial Services Ltd, Investment Manager to TEIF, commented: "The sale in Finland represents the successful continuation of the Nordic sales program.
"Marketing efforts continue on the remaining assets although it is noticeable that the debt markets have deteriorated in the Nordic region, as with the rest of Europe, and this is likely to have a negative impact on pricing in 2012.
"The sales in Belgium reflect a strategy which responds to the strong levels of demand from owner occupiers, in contrast to tough leasing market conditions. The asset lends itself well to a unit-by-unit sale and the pricing obtainable represents a premium to valuation. We will aim to complete further unit sales early in 2012."
Realia acted for TEIF in Finland and, in Belgium, West and Structura were the joint selling agents.
Source: FTI Consulting