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Commercial Property News
Advantage Trust sales confirm smaller commercial property valuations holding up
Advantage Property Income Trust Ltd.(formerly knowns as The Teesland Advantage Property Income Trust Ltd) said it has sold five of its investment properties for £4.17 million.
The company said it achieved a value 1.8% above preceding valuations, reflecting an aggregate net initial yield of 6%, which confirms anecdotal evidence that the smaller commercial properties have held their values in recent months.
The Advantage Property said it will use the sale proceeds to repay debt.
Additionally, the company also said it will repay debt of £2.2 million of capital on the next interest payment date. The company has facilities from Bank of Scotland and under the terms of that revolver facility the LTV has to be kept below 55%. In order to maintain these terms the company is obliged to sell properties to realise the funds in them to repay the loan to keep with that agreement.
The company said it achieved a value 1.8% above preceding valuations, reflecting an aggregate net initial yield of 6%, which confirms anecdotal evidence that the smaller commercial properties have held their values in recent months.
The Advantage Property said it will use the sale proceeds to repay debt.
Additionally, the company also said it will repay debt of £2.2 million of capital on the next interest payment date. The company has facilities from Bank of Scotland and under the terms of that revolver facility the LTV has to be kept below 55%. In order to maintain these terms the company is obliged to sell properties to realise the funds in them to repay the loan to keep with that agreement.
Mon, 6th Oct 2008