Elite UK REIT, through its trustee, has entered into a contract of sale to divest Hilden House, Warrington, for GBP3.28 million ($5.55 million). The consideration represents a premium of 6% above its valuation of GBP3.1 million as at June 30.
The five-storey Hilden House sits on a 0.32 hectare site with 50,841 sq ft of net internal area. It is located at Winmarleigh Street, Warrington, which sits between Liverpool and Manchester. The building is located opposite the Warrington Town Hall and is surrounded by a mix of office, retail and residential properties.
It was previously leased to the Department for Work and Pensions (DWP) in the UK for its back-office operations and was vacated as part of the DWP’s lease re-gearing exercise. Dilapidation settlements were completed in 2023.
The manager of the REIT says net proceeds from the proposed divestment will be used to repay debt. The property is currently vacant and the proposed divestment is not expected to materially impact the REIT’s net asset value (NAV) and distribution per unit (DPU) for the FY2024 ending Dec 31.
In its 3QFY2024 business update, Elite UK REIT reported a net gearing ratio of 45.1% as at Sept 30 and 43.6% as at Oct 7.
Units in Elite UK REIT closed 0.5 pence higher or 1.75% up at 29 pence on Nov 26.
