Scottish Metropolitan has sold a portfolio of nine properties to Greenwich Group International on behalf of managed funds for £26.55m. The deal reflects a yield of 10.5% on income of £2.8m pa – and reflects a loss of £2.1m (7.3%) on book value.
The portfolio comprises offices at Beneficial Building, Birmingham; Hayweight House, West Port House, 10-12 Melville Crescent and 26-28 Walker Street, all in Edinburgh; Gresham Chambers, Mercantile Chambers and 111 Union Street, all in Glasgow; and an industrial property in Hillbottom Road, High Wycombe.
Scott Cairns, Managing Director of Scottish Metropolitan, said: “This sale is a major step in the implementation of our strategy of rebalancing the portfolio out of higher yielding offices in favour of lower yielding and better quality assets. We look to reinvest the proceeds of this sale in the retail sector, particularly retail warehousing which now accounts for over 15% of the portfolio.”
EGi News 19/08/97
