ING UK Real Estate (IRET), the UK property arm of Dutch financial group ING, has sold two properties for a total of £34 mln (EUR 44 mln). The first asset sold by the Guernsey-registered closed investment fund involved retail property comprising a Tesco Supermarket and adjoining retail units covering a total 8,441 m[sup]2[/sup] in Frodsham Street and Frodsham Square in Chester. That property was sold to Tesco Stores Limited for £32 mln, a sales price IRET said reflects a net initial yield of 4.84%. IRET also completed the sale of the 893 m[sup]2[/sup] Globe House in West Byfleet for £2.2 mln, reflecting a net initial yield of 7.8%. Globe House is made up of freehold office space multi-let on three separate leases. IRET said the two sales reflect a premium of 10.12% ahead of the December 2007 valuation.
ING UK Real Estate (IRET), the UK property arm of Dutch financial group ING, has sold two properties for a total of £34 mln (EUR 44 mln). The first asset sold by the Guernsey-registered closed investment fund involved retail property comprising a Tesco Supermarket and adjoining retail units covering a total 8,441 m2 in Frodsham Street and Frodsham Square in Chester. That property was sold to Tesco Stores Limited for £32 mln, a sales price IRET said reflects a net initial yield of 4.84%. IRET also completed the sale of the 893 m2 Globe House in West Byfleet for £2.2 mln, reflecting a net initial yield of 7.8%. Globe House is made up of freehold office space multi-let on three separate leases. IRET said the two sales reflect a premium of 10.12% ahead of the December 2007 valuation.
'In common with other recent disposals, these transactions will in due course enable us to reduce the company's non securitised borrowings and is consistent with our model to maximise income and improve our dividend cover,' IRET fund manager Michael Morris said in a statement.
