The Tamar European Industrial fund continues to sell assets and is in discussions over a loan extension allowing it to return cash to shareholders.
The Guernsey-registered closed-ended investment company said it had just three Nordic assets remaining and was under offer to dispose of one.
In the three-month results to the end of September, the group posted a 59p a share adjusted NAV – down by 4.2% from June.
After deducting all deferred tax, NAV at 30 September was 45.8p a share, up from 47.1p at 30 June.
The company said that occupational markets continued to be challenging and that the fund’s occupancy level by ERV fell from 86.48% to 83.99% over the quarter or from 83.35% to 79.32% by area.
However, this was almost entirely due to the departure of the largest tenant by area (250,600 sq ft) in the French portfolio, with half of the vacated area being immediately re-let to MGF Logistique at market rental value.
Sales totalling £5.56m were made during the quarter, comprising one asset in each of Belgium and Finland together with part of an asset in Holland.
Tamar’s 40-strong portfolio decreased over the quarter by 2.54% to £143.6m primarily due to the fall in occupancy.
Its debt levels were 57%, and its loan-to-value covenants on banking facilities currently range from 70% to 90% – averaging 75% based on debt drawn.
Chairman Giles Weaver said: “The company has continued to dispose of its Nordic assets and only three, all located in Sweden, now remain. One of these is currently under offer and marketing of the other two has commenced against an improving market backdrop in which transaction levels are increasing, despite ongoing residual caution on the part of prospective purchasers.
“The company is in advanced discussions with the banks with respect to the December 2013 loan extension, the conclusion of which will provide the fund with time to achieve further orderly disposals among the remaining non-Nordic assets.
“The intention of the company is also to make arrangements to make a cash return to shareholders in the coming months, as soon as practicable post signing of the legal documentation. Shareholders will be updated on this as appropriate in due course.”
bridget.oconnell@estatesgazette.com
