Tamar European Industrial Fund sells assets in Sweden, France and Belgium (SE/FR/BE)

Tamar European Industrial Fund announces that it has sold two assets and part of a third for a total consideration of £6.54 million (approx. €8 million).

The first asset, located in Helsingborg on the southwest coast of Sweden, comprises a 1970s warehousing building of 10,375 m². Virtually fully let, its three tenants include Puma and the Swedish Post Office, with lease expiries in 2013 and 2015.

The transaction, which was secured through a sale of the corporate wrapper, achieved a gross price of £4.39 million, prior to discounting for tax, and reflects a net initial yield of just over 8% and a 4% premium to the December 2011 valuation.

After allowing for the reduction given to the purchaser for latent capital gains tax, the price showed a 1% discount to the December valuation. The purchaser is a quoted property company focused on the Öresund region, in which the property is located.

The second asset is located in Vaulx en Velin, a suburb of Lyon, France. It comprises a 1970s warehouse building of 9,466 m² and is 65% let to a single tenant with a break option in January 2014. The sale was completed at a net price of £1.51 million, reflecting a net initial yield of 10.4%. The asset requires significant capital investment at the expiry of the lease and the price reflects a substantial premium to valuation. The purchaser is a local property company.

The other sale comprises two further units at Sint-Pieters-Leeuw in Belgium, following the sale of five units at the property in December 2011 in accordance with the strategy to sell the asset on a unit-by-unit basis. The two units, which were almost fully vacant, were sold to owner occupiers for a total price of £0.64 million, which is a significant, premium to valuation. These sales mean that 63% of the asset has now been sold, with four units remaining.

Rob Brook, Managing Director of Tamar Financial Services Ltd, Investment Manager to TEIF, commented: "The sale of Helsingborg at a slight premium to valuation is satisfying considering that the Swedish market has seen a marked slowdown over the last couple of quarters.

"The French sale is another opportunistic transaction that has enabled the Fund to dispose of this secondary asset at a substantial premium to valuation.

"Finally, the sale of the units at the St Pieters asset in Belgium is a further illustration of the continuing good levels of demand from owner occupiers."

Catella acted on behalf of TEIF on the Swedish disposal and Structura on the Belgian disposals.

Source: FTI Consulting

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