Industrials REIT has disposed of its penultimate non-MLI building.
The REIT, formerly known as Stenprop, has exchanged contracts to sell a health and leisure club in Switzerland for CHF12.5m (£10.6m), at a 17% discount to book value. The discount reflected the ability of the club’s occupier to pay its rent.
The transaction leaves Industrials REIT with just one non-MLI asset, a portfolio of four care homes in Germany, which is held in a joint venture.
CEO Paul Arenson said: “The Lugano transaction takes us another step closer to achieving our goal set out four years ago of being a fully focused MLI REIT by the end of March 2022. We continue to recycle the proceeds into UK MLI assets, having purchased 11 estates for circa £60m since the start of the financial year.”
On completion of the Lugano disposal and based on 31 March 2021 valuations, the Industrials REIT MLI portfolio will account for 94% of total assets.
In a separate transaction, Industrials REIT has acquired Harmony Court in Glasgow for £5.25m, reflecting a net initial yield of 5.6% and a capital value of £109 per sq ft. The 48,169 sq ft, 10-unit industrial estate is 100% let and generates a total annual passing rent of £311,051, which equates to an average rent of £6.46 per sq ft. Industrials REIT was represented by Colliers on the deal.
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