Invista European Real Estate Trust has launched a “structured” sale of its assets and has appointed Internos as its new manager to implement the strategy.
The trust said that it had decided on a “structured realisation strategy” in light of the substantial discount to NAV at which its shares currently trade.
Invista said: “Subject to the approval by shareholders of the proposed revised investment objectives, all existing properties will be sold as expeditiously as is consistent with the protection of value, with an initial focus on those properties already optimised for sale and those in markets where the company has few assets, so as to reduce property management costs.”
Proceeds from sales will initially be used to repay debt, with the remainder returned to shareholders with in a three-year timescale. Invista said that new property would not be acquired unless deemed “essential to protect or engance the realisable value of an existing asset”.
The trust added that it would also consider a merger or sale of the company.
Internos will collect a realisation fee equal to 12.5% of the amount by which cash returned to ordinary shareholders exceeds €82.8m (£74.5m), compounded at 10% pa as part of its contract with Invista.
The fund manager will also conduct a full strategic and operational review of all aspects of the company’s property portfolio, banking facilities and administrative arrangements, with a view to achieving additional cost reductions for the company. It will be paid a monthly fee of €75,000 for the work.
samantha.mcclary@estatesgazette.com
