ING UK Real Estate Income Trust Limited
13 January 2009
ING UK Real Estate Income Trust Announces Further Disposals
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 two assets for a combined consideration of GPB 7.25m reflecting a yield of 8.28%. The proceeds of the sales will be used to reduce the net debt position in order to create further headroom against the Company's loan to value covenant on its securitised debt facility.
The Company sold an office property at One The Boulevard, Shire Park, Welwyn Garden City, Hertfordshire which comprises two floors of office space totalling 35,050 sq ft and 180 car parking spaces leased to Paypoint Network Limited. In addition, the Company sold part of its holding at Scots Corner, Institute Road, Kings Heath, Birmingham which comprised a car park leased to Euro Car Parks Limited. It will retain its interest in the remaining retail and office property at the site.
The Company remains committed in light of current market conditions to undertake further disposals where necessary to strengthen its balance sheet and ensure operation within principal debt covenants. It expects to make further disposals during 2009.
Michael Morris, Fund Manager, said: "These sales, which are in line with valuation, have enabled IRET to take advantage of an opportunity to dispose of assets to owner occupiers at a time when there has been limited liquidity in the underlying market."
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, email@example.com
Dido Laurimore/Laurence Jones, 020 7831 3113