Login to UKBP
Commercial Property News
Local Shopping REIT makes steady progress growing it's commercial property portfolio
In a trading update for the 4 months to July 31st. the Local Shopping REIT, which has invested in 647 suburban shopping properties,said it's void rate, which in March was 11.9% has fallen to 11.7%, as it had let a further 40 retail units.
Planning consent has been obtained for 9 flats and one further retail unit, which is LSR's standard practice for extracting value from it's portfolio. Once value is extracted the property is disposed of, since March 3 such properties have been sold for a total of £1.85 million which was 7.1% above the March valuation.
During the period a further 17 properties have been acquired for £8.87 million for an average initial yield of 7.52%, which included a £1.62 million parade in Stanwell, Middlesex, incorporating a reversionary convenience store let to Sainsbury's reflecting a net initial yield of 7.86%, and a £0.75 million portfolio of six shops in Scotland let to Ladbrokes on six-year leases, reflecting a net initial yield of 8.95%.
Nick Gregory, LSR's Joint Chief Executive Officer, said: "We continue to maintain our focus on actively working the existing portfolio to maximise income, despite the challenge of uncertain economic conditions, which persist in presenting a challenging retail environment for retailers. Against this backdrop, we are pleased to report strong progress in lettings and lease reviews and renewals during the period.
"Additionally, we are maintaining a highly selective approach to acquisitions in order to ensure that our purchases provide us with the potential for future rental growth or the opportunity to deliver added value by applying our active asset management skills."
Planning consent has been obtained for 9 flats and one further retail unit, which is LSR's standard practice for extracting value from it's portfolio. Once value is extracted the property is disposed of, since March 3 such properties have been sold for a total of £1.85 million which was 7.1% above the March valuation.
During the period a further 17 properties have been acquired for £8.87 million for an average initial yield of 7.52%, which included a £1.62 million parade in Stanwell, Middlesex, incorporating a reversionary convenience store let to Sainsbury's reflecting a net initial yield of 7.86%, and a £0.75 million portfolio of six shops in Scotland let to Ladbrokes on six-year leases, reflecting a net initial yield of 8.95%.
Nick Gregory, LSR's Joint Chief Executive Officer, said: "We continue to maintain our focus on actively working the existing portfolio to maximise income, despite the challenge of uncertain economic conditions, which persist in presenting a challenging retail environment for retailers. Against this backdrop, we are pleased to report strong progress in lettings and lease reviews and renewals during the period.
"Additionally, we are maintaining a highly selective approach to acquisitions in order to ensure that our purchases provide us with the potential for future rental growth or the opportunity to deliver added value by applying our active asset management skills."
Tue, 10th Aug 2010