The last 387 properties owned by Local Shopping REIT are to come to market in a £90m portfolio, spelling the effective end of the London Stock Exchange-listed company.
Project Renouvier comprises 328 freehold and 59 leasehold shops located across the UK.
The properties are held by four corporate vehicles, the entire share capital of which is being marketed by Allsop.
The portfolio is being sold with a £64.8m loan from HSBC that is secured against two of the corporate vehicles and matures in April 2018.
Founded in 2005 and floated in 2007, Local Shopping REIT said last summer that it planned to liquidate its assets following a strategic review of the company. It appointed Internos to manage the portfolio, much of which has already been sold.
Varde Partners secured the REIT’s £80m Project Minard portfolio in June, which comprised 234 high street shops.
The Renouvier properties comprise 727,000 sq ft in total, with an average weighted unexpired term of 3.7 years to break and 4.7 years to expiry.
Around 12% of the predominantly portfolio by rental value is vacant.
Total rent is almost £8m. Tesco is the largest single tenant, accounting for 6.2% of income.
While comprised mostly of convenience shops, the portfolio also includes 195 residential ground rents and 229 flats and offers substantial potential for further residential conversions.
A source said: “Convenience shopping didn’t see the same carnage as the high street, so this is likely to attract a lot of interest.”
Bids will be called in early November.
