ING UK Real Estate Income Trust Limited
8 September 2008
ING UK Real Estate Income Trust announces further disposal and confirms timetable for repaying total non-securitised borrowings
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 property at 134-152 Balham High Road, London for a total consideration of GBP 10.5 million. This transaction will enable the Company to complete its strategy of repaying its outstanding non-securitised borrowings early and in full, and this is expected to take place before the end of 2008.
134-152 Balham High Road comprises a total of 2,212 sq m (23,815 sq ft) of retail space and ancillary offices and has been sold to Waitrose Ltd. The sale price reflects a net initial yield of 3.57%. Completion is due on 19 September 2008.
IRET initiated its asset disposal programme in 2007 and since the peak of market in June 2007; it has sold nine assets for a total of GBP 84 million at a weighted yield of 4.28% and a cumulative premium of 3.5% to that June valuation.
Commenting, Michael Morris, Fund Manager, said:
"We are pleased, particularly in this market, to have made a further disposal which enhances NAV and is income accretive. This transaction concludes a successful programme of sales which enables us to fulfil our strategy of paying down the Company's more expensive non-securitised borrowings early which were due for repayment by December 2009. Given current market conditions and the pricing achieved, we see this as both a prudent and well timed move.
"We continue to evaluate our portfolio and will take the opportunity to sell assets, where we feel we can achieve an attractive price in the market. Future sale proceeds will be used to provide further headroom against loan covenants should market conditions require."
For further information:
Tel: 01481 745439
Fax: 01481 745085
ING Real Estate Investment Management (UK) Limited
Helen Stott, 020 7767 5648, email@example.com
Dido Laurimore/Laurence Jones, 020 7831 3113