L&S becomes a REIT, sells retail park for 40% premium

UK listed opportunistic fund London & Stamford converted to UK real estate investment trust (REIT) status on Friday and announced the sale of a retail park for £40 mln more than the firm paid for it 15 months ago.

L&S said that its shares have moved from London's junior AIM market to the Main Market for listed securities of the London Stock Exchange. The management of the company has also been internalised, meaning all requirements have been met for the company to become a REIT.

Raymond Mould, executive chairman of London & Stamford, said: 'We are delighted that London & Stamford has successfully moved to the Official List and converted to a REIT. Alongside the internalisation of the management, we believe these changes will allow us to continue to grow the company and to take advantage of the significant opportunities we see to deploy the company's capital on attractive terms to enhance shareholder returns.'

Separately, L&S said it has exchanged contracts to sell Racecourse Retail Park, Aintree in the UK to The Crown Estate for £101.5 mln (EUR 117 mln). The 27,400-m² retail park is multi-let to 14 tenants, including Boots, M&S, Next, Mothercare and B&Q.

Back in June 2009, L&S acquired the Aintree asset from a subsidiary of Land Securities for £61 mln in the opportunity fund's first investment in retail warehouse park segment.