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Commercial Property News
Local Shopping REIT make steady start to 2010
The Local Shopping REIT plc, owner of 625 local shopping parades containing some 2000 shops, today reported steady demand for it's units in the first 4 months of it's year since September 2009 and no increase in tenant defaults.
Some tenants are seeing an improvement and they cite the case of an estate agent in Plympton with four other branches, which has recently reopened its shop, having previously closed it for 13 months.
They also cite the small mixed-use portfolio in the North West which LSR is managing at the request of a large UK bank. This is expected to be the first of several more asset management roles which are under discussion with lenders, and which ultimately may turn into acquisition opportunities.
LSR has purchased 7 properties for £1.56million on a net initial yield of 9.33% and sold 10 properties for £2.41 million, which is 0.8% above their book value, where no further growth opportunity exists.
LSR has no LTV covenants on it's existing debt of £117 million and it has a further £60 million of undrawn facilities with HSBC available until Jan 2013 which has an 85% LTV covenant.
Some tenants are seeing an improvement and they cite the case of an estate agent in Plympton with four other branches, which has recently reopened its shop, having previously closed it for 13 months.
They also cite the small mixed-use portfolio in the North West which LSR is managing at the request of a large UK bank. This is expected to be the first of several more asset management roles which are under discussion with lenders, and which ultimately may turn into acquisition opportunities.
LSR has purchased 7 properties for £1.56million on a net initial yield of 9.33% and sold 10 properties for £2.41 million, which is 0.8% above their book value, where no further growth opportunity exists.
LSR has no LTV covenants on it's existing debt of £117 million and it has a further £60 million of undrawn facilities with HSBC available until Jan 2013 which has an 85% LTV covenant.
Tue, 9th Feb 2010