European Real Estate Inv Tst Ltd Portfolio Update (5825F)

TIDMERET

RNS Number : 5825F

European Real Estate Inv Tst Ltd

29 July 2016

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 EUR24.2 million.

The gross sale price of EUR24.6 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: [phone]

Cenkos Securities plc

Will Rogers Phone: [phone]

Sapna Shah Phone: [phone]

Schroder Real Estate Investment Management Ltd

Tony Smedley Phone: [phone]

This information is provided by RNS

The company news service from the London Stock Exchange

END

PFUEAKXPAEPKEFF

(END) Dow Jones Newswires

July 29, 2016 02:02 ET (06:02 GMT)