ING UK agrees ninth disposal
Article Date: Sep 08 2008A Guernsey registered closed-ended investment company is to sell a retail property in London to a supermarket chain. Waitrose is to become the new owner of 134-152 Balham High Road after reaching an agreement with ING UK Real Estate Income Trust.
The acquisition of 24,000 sq ft of retail space and ancillary offices is expected to close on 19 September. It will cost Waitrose £10.5 million, reflecting a net initial yield of 3.57 per cent.
The disposal completes the company’s strategy of repaying its non-secured debt in full by the end of the year. This will be its ninth asset to be sold as part of the plan and brings its income to £84 million at a weighted yield of 4.28 per cent.
ING UK fund manager Michael Morris said given current market conditions and the value of the deal, this was a prudent and timely move.
“We continue to evaluate our portfolio and will take the opportunity to sell assets, where we feel we can achieve an attractive price in the market,” he added. “Future sale proceeds will be used to provide further headroom against loan covenants according to market conditions.”
