22 August 2008
ING UK Real Estate Income Trust Limited
ING UK Real Estate Income Trust announces a further disposal
ING UK Real Estate Income Trust Ltd ("IRET" / "the Company"), a Guernsey registered closed-ended investment company, today announces that it has exchanged contracts on the sale of a retail warehouse asset at 9/17 Western Road, Mitcham for GBP 4.5 million.
The property comprises two retail warehouse units, totalling 16,716 sq ft (1,553 sq m) one unit is let to Netto on a lease that expires in 2009 and there is an additional unit which is currently vacant. The asset currently generates a net rental income of GBP 131,400 per annum and the sale price reflects a net initial yield of 2.8%.
The sale is in line with IRET's strategy to reduce the number of smaller assets within the portfolio with a view to reducing overall debt within the vehicle, and follows a number of other recent disposals. Completion is scheduled for October 2008.
Commenting, Michael Morris, Fund Manager, said:
"We facilitated this owner occupier disposal through a surrender of an existing occupational lease and we are pleased, particularly in the current market, to have made a disposal at a price that is both NAV and income accretive."
For further information:
The Company Secretary
Northern Trust International Fund Administration Services (Guernsey) Limited
St Peter Port
Tel: 01481 745439
Fax: 01481 745085
ING Real Estate Investment Management (UK) Limited
Helen Stott, 020 7767 5648, firstname.lastname@example.org
Dido Laurimore/Laurence Jones, 020 7831 3113