European Real Estate Inv Tst Ltd Potential change of investment strategy (1895H)

TIDMERET

RNS Number : 1895H

European Real Estate Inv Tst Ltd

06 June 2017

European Real Estate Investment Trust Limited

6 June 2017

Potential change of investment strategy

As advised in the most recent report and accounts, the sale of the final property asset in the Company's portfolio, La Gaude, located in Nice, France is expected to complete shortly. The net sale proceeds to the Company will be approximately EUR5.75 million being 0.74 cents per share.

Consistent with the realisation strategy in place since 2011, the Board intends to make a further cash distribution to Shareholders following the Annual General Meeting of the Company on 29 June 2017.

The Board is also considering a proposal received from Quidnet Capital Partners LLP ("Quidnet") for the Company to change its investment objective and strategy to focus on high yielding commercial property which will be actively managed to drive investment returns. The strategy is to deliver an attractive total return to shareholders, underpinned by a target a 6+ per cent dividend yield(1) . Quidnet will focus on high income industrial and offices in England and Wales, which it believes are the sectors and locations which have the highest rental growth prospects. Under the proposal the Company would appoint Quidnet as the investment manager and also undertake a significant equity raise to provide capital to invest in the new investment strategy.

Quidnet is a commercial real estate asset management group, led by Chief Executive Richard Tice. Richard and his team have acquired over GBP430 million of commercial real estate for clients since the middle of 2014. Prior to joining Quidnet, Richard was Chief Executive of CLS Holdings plc, between 2010 and early 2014, during which time the company's share price increased from GBP4.70 to GBP13.

The Board and Quidnet have signed a heads of terms agreement and will be undertaking a consultation with Shareholders and potential new investors in order to ascertain the viability of the proposals.

Any change of investment strategy would be conditional on, inter alia, Shareholder and regulatory approval.

This consultation is expected to be concluded by early July at which time the Company will provide an update to Shareholders.

Enquiries:

Praxis Fund Services Limited

   Shona Darling                                                    Phone: [phone] 

Cenkos Securities PLC

   Will Rogers                                                         Phone: [phone] 

Alex Collins [phone]

Schroder Real Estate Investment Management Ltd

   Tony Smedley                                                   Phone: [phone] 

(1) The dividend target is a target only and there is no guarantee that the target dividend can or will be achieved and it should not be taken as an indication of the Company's expected or actual return.

This information is provided by RNS

The company news service from the London Stock Exchange

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June 06, 2017 02:00 ET (06:00 GMT)