Local Shopping REIT offloads more property

Local Shopping REIT has sold off several properties as it as it continues to liquidate its portfolio. The firm is selling off its portfolio and giving back the cash proceeds to its shareholders. It has no debt. The most recent sales include six properties for an aggregate price of £930,000, at a 1.1% discount to carrying value before sales costs.    Carrying value, in this context, refers to the property values in the company’s audited accounts as at 30 September 2018, adjusted for subsequent capital expenditure. Of the six sales, three were sold through private treaty transactions for £580,000, representing a 5.6% discount to carrying value before sales costs. The other three properties exchanged in auctions during February. The aggregate sale price of these was £350,000, representing a 7.2% premium to carrying value before sales costs. The company now has approximately £21.2m in cash reserves and expects to generate a further £2.2m through further property sales in the coming weeks. Earlier this month, Thalassa Holdings made an offer to acquire LSR. Thalassa, which announced its intention to acquire Local Shopping REIT last month, made the bid on 6 February and is expected to post its offer document between 20 February and 6 March. LSR will be required to respond within 14 days. The British Virgin Islands-based firm, which owns 25.48% of LSR, voted against the winding up of the REIT in December. In its annual results for the year ended 30 September, the REIT said that paying back its bank loans in July with sale proceeds was a “major achievement during the year”, and it has whittled its portfolio down to 34 property assets, valued at £9.3m, of which 23 are under offer.   To send feedback, e-mail anna.ward@egi.co.uk or tweet @annaroxelana or @estatesgazette