IRET sells two properties at 1% valuation discount

ING UK Real Estate Income Trust (IRET) said it has exchanged contracts on the sale of two assets for a total of £14.1 mln (EUR 16.4 mln), reflecting a 1% discount on their March valuation.

In what IRET described as one of the largest occupier led transactions in the North West M25 office market, it exchanged contracts to sell a vacant office building in Watford to an owner-occupier. The transaction, which reduces the void rate within the portfolio from 9% to 7% was achieved following the grant of planning permission to reconfigure access to the property.

In a separate transaction, IRET exchanged contracts to sell a distribution unit at Ravensbank Business Park, Redditch. The unit, leased to SP Group until 2021 was sold for £7.3 mln.

Fund manager Michael Morris commented: 'The proceeds from these disposals will provide the company with further covenant headroom, increased operational flexibility and enable IRET to undertake further projects which will provide opportunities to enhance both the income and capital position of a number of other assets within the portfolio.'