They are sold to an unrelated third-party purchaser through the Reit’s wholly owned subsidiaries
[SINGAPORE] The manager of Elite UK real estate investment trust (Reit) on Friday (Jul 3) announced the divestment of four properties located in Wales for a total sale consideration of £6 million (US$8 million).
The properties were sold to an unrelated third-party purchaser through the Reit’s wholly owned subsidiaries, Elite Gemstones Properties and Elite Amphora.
The divested portfolio consists of assets located at High Street, Swansea; Windsor Road, Neath; Oldway House, Swansea; and Station Road, Port Talbot.
The four properties are currently occupied by the UK’s Department for Work and Pensions.
Financially, the £6 million sale consideration represents a premium to the properties’ current accounts valuation, which stands at £5.3 million.
The Reit’s manager said that the net proceeds generated from this divestment will be recycled into high-growth opportunities.
Furthermore, the manager noted that this divestment is not expected to have a material impact on Elite UK Reit’s net asset value for the financial year ending 31 Dec, 2026.
This comes after the trust on Jun 16 said that it is set to buy five freehold and virtual freehold government-leased properties across the UK for £31.9 million.
It also embarked on a £19 million conversion of its Lindsay House property in Dundee, Scotland, into a purpose-built student accommodation facility.
Together, these moves were set to be distribution-accretive, said Elite UK Reit then.
Units of Elite UK Reit fell 1.6 per cent or £0.005 to end at £0.31 on Thursday.
