The manager of Elite UK REIT says the REIT has entered into a contract of sale for the divestment of Sidlaw House, Dundee.
According to an Oct 2 bourse filing, the property is currently vacant, and has a sale consideration of GBP1,275,000 ($2.2 million).
The sale consideration represents a 41.7% premium above its valuation of GBP900,000 as at June 30, based on an independent valuation conducted by CBRE.
Net proceeds from the divestment are set to be used for the repayment of the REIT’s outstanding borrowings.
According to the group, the divestment is not expected to have a material impact on Elite UK REIT’s net asset value and distribution per unit for the financial year ending Dec 31.
Units in Elite UK REIT closed 1 pence higher, or up 3.23%, at 32 pence on Oct 2.
See also: IREIT signs 20-year lease contract with UK hotel chain, Premier Inn, in Berlin Campus
