29 July 2016
European Real Estate Investment Trust Limited
Disposal of Spanish Portfolio
The Board of European Real Estate Investment Trust ('the Group') is pleased to announce that a sale of the three industrial properties in Spain (Madrid, Valladolid and Cordoba) to Panrico, the tenant, has been completed for a net price of €24.2 million.
The gross sale price of €24.6 million represents a premium of 9.1% over the valuation as at 30 June 2016. The Spanish assets represented about 70.8% of the portfolio value as at 30 June 2016.
As previously reported the sale of the Spanish assets has proven more difficult against the background of the corporate restructuring undertaken by Panrico in recent years. The completion of the acquisition of Panrico by Bimbo provided an efficient exit opportunity for the Group at a price which is attractive to shareholders and at a premium to carrying value.
The last remaining asset in the portfolio is La Gaude, in Nice. This office property is vacant and likely to have a higher value as an alternative use. Work continues with the local development authority to explore the best possible future use of the site, in parallel with considering all options to effect an early sale.
The Board will continue to review the position with regards to repayment of capital and redemption of shares in due course.
Enquiries:
Praxis Fund Services Limited
Shona Darling Phone: +44(0) 1481 755528
Cenkos Securities plc
Will Rogers Phone: +44 (0) 20 7397 1920
Sapna Shah Phone: +44 (0) 20 7397 1922
Schroder Real Estate Investment Management Ltd
Tony Smedley Phone: +44(0) 20 7658 6000
European Real Estate Investment Trust Limited published this content on 29 July 2016 and is solely responsible for the information contained herein.
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