Local Shopping REIT (The) PLC Update on Property Sales Programme (6653U)

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RNS Number : 6653U

Local Shopping REIT (The) PLC

16 July 2018

The Local Shopping REIT plc

Update on Property Sales Programme

The Board of The Local Shopping REIT plc ("the Company") is pleased to provide the following update on progress with its property sales programme.

Since the last update, the Company has sold 20 properties for an aggregate price of GBP3.7 million, representing a 7.2% discount to carrying value before sales costs.

Four of the properties sold were private treaty transactions which completed for an aggregate sale price of GBP603,000, representing a 3.1% discount to carrying value before sales costs.

The other 16 sales were disposed during the late May and July auctions. The aggregate sale price of these was GBP3.1 million representing a 7.9% discount to carrying value before sales costs. The recent auction sales weighed heavily towards those assets subject to the pre-emption rights of residential tenants under section 5 of the Landlord and Tenant Act 1987, and included some more challenging properties.

The sales costs associated with these disposals are estimated to be circa 4.6%, resulting in a realised loss on sale of 11.8%. This incorporates the increased sales costs associated with properties subject to section 5 notifications.

Excluding properties where we have exchanged contracts for sale, the portfolio comprises 86 properties valued at GBP23.9m.

Within this, we are progressing a number of private treaty sales and have agreed terms, subject to contract, on 26 properties (total book value GBP10.5 million). This includes one significant portfolio sale and a number of assets subject to statutory waiting periods due in relation to section 5 of the Landlord and Tenant Act 1987.

This leaves 60 properties valued at GBP13.4 million which we will continue to market as individual assets and small portfolios, both in the private treaty market and the auctions during the remainder of the calendar year.

Proceeds of the asset sales have been used to repay outstanding bank debt, which now stands at GBP1.3m and will be repaid in full from committed sales by the end of this month, achieving an important milestone in the Company's stated investment policy.

[ENDS]

Enquiries:

Rupert Wallman, Fund Manager [phone]

Bill Heaney, Company Secretary [phone]

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July 16, 2018 02:00 ET (06:00 GMT)