Elite UK Reit sells four Wales properties for US$8 million
They have been divested to an unrelated third party, through the Reit’s wholly owned subsidiaries
[SINGAPORE] The manager of Elite UK Real Estate Investment Trust (Reit) on Friday (Jul 3) announced the divestment of four properties in Wales for a total consideration of £6 million (US$8 million).
The properties were sold to an unrelated third-party purchaser through the Reit’s wholly owned subsidiaries, Elite Gemstones Properties and Elite Amphora.
The divested portfolio consists of assets in:
- High Street, Swansea;
- Windsor Road, Neath;
- Oldway House, Swansea; and
- Station Road, Port Talbot.
The four properties are currently occupied by the UK’s Department for Work and Pensions.
“This divestment complements our recent proposed acquisition of five government-leased properties,” said Joshua Liaw, CEO of the manager.
Financially, the £6 million sale consideration represents a premium to the properties’ current accounts valuation, which stands at £5.3 million.
The Reit’s manager said that the net proceeds generated from this divestment will be recycled into high-growth opportunities.
It added that the divestment is not expected to have a material impact on Elite UK Reit’s net asset value for the financial year ending Dec 31, 2026.
The sale comes after a Jun 16 announcement that the Reit is set to buy five freehold and virtual freehold government-leased properties in the UK for £31.9 million.
It is also embarking on a £19 million conversion of its Lindsay House property in Dundee, Scotland, into a purpose-built student accommodation facility.
Together, these moves were set to be distribution-accretive, said the Reit’s manager then. Liaw added that the Reit can get “additional flexibility to invest in value-creation opportunities” like Lindsay House through the Wales property divestments.
Units of Elite UK Reit fell 1.6 per cent or £0.005 to end at £0.31 on Thursday.
