Disposal of hotel in Glasgow
9 August 2023
Alternative Income REIT PLC
(the "Company" or "Group")
£7.5 MILLION SALE OF HOTEL IN GLASGOW AT 7.9% PREMIUM TO BOOK VALUE AT 30 JUNE 2023
The Board of Directors of Alternative Income REIT PLC (ticker: AIRE), the owner of a diversified portfolio of UK commercial property assets predominantly let on long leases with inflation-linked reviews, is pleased to announce that it has completed the sale of the Mercure City Hotel, Ingram Street, Glasgow, for a total consideration of £7,500,000 to the current tenant S Hotels & Resorts (UK) Limited. This property represented 6.5% of the Group's portfolio at 30 June 2023. The disposal represents:
· a 7.9% premium (approximately £550,000) on the book value at 30 June 2023; and
· reflects a net exit yield of 8.9%.
Based on the 30 June 2023 valuations, the transaction reduces the Group's LTV from 41.6% to 36.7%, whilst the interest cover ratio is 556.3% on the Group's debt facility, which is fixed at 3.19% and matures in October 2025. The Group intends to redeploy the proceeds from this into additional investment assets as soon as practical.
Simon Bennett, Non-Executive Chairman of Alternative Income REIT PLC, commented:
"We are pleased to sell the hotel in central Glasgow at an attractive 7.9% premium to book value. The sale will enable the proceeds to be recycled into one or more properties as the Group seeks to achieve further diversification of the portfolio's tenants and assets."
ENQUIRIES
|
Alternative Income REIT PLC Simon Bennett - Chairman |
via H/Advisors Maitland below |
|
|
|
|
M7 Real Estate Ltd Richard Croft |
+44 (0)20 3657 5500 |
|
Jane Blore |
|
|
|
|
|
Panmure Gordon (UK) Limited |
+44 (0)20 7886 2500 |
|
Alex Collins |
|
|
Tom Scrivens |
|
|
|
|
|
H/Advisors Maitland (Communications Adviser) |
+44(0) 7747 113 930 |
|
James Benjamin |
aire-maitland@h-advisors.global |
The Company's LEI is 213800MPBIJS12Q88F71.
Further information on Alternative Income REIT PLC is available at www.alternativeincomereit.com1
About the Group
Alternative Income REIT PLC aims to generate a sustainable, secure and attractive income return for shareholders from a diversified portfolio of UK property investments, predominately in alternative and specialist sectors. The majority of the assets in the Group's portfolio are let on long leases which contain inflation linked rent review provisions, which help to underpin income distributions to shareholders with the potential for income and capital growth.
The Company's Investment Adviser is M7 Real Estate Limited ("M7"). M7 is a leading specialist in the pan-European, regional, multi-tenanted real estate market. Majority owned by its senior managers, it has over 200 employees in 15 countries across Europe. The team manages over 620 properties with a value of circa €6.9 billion.
Notes
1 Neither the content of the Company's website, nor the content of any website accessible from hyperlinks on its website or any other website, is incorporated into, or forms part of, this announcement nor, unless previously published on a Regulatory Information Service, should any such content be relied upon in reaching a decision as to whether or not to acquire, continue to hold, or dispose of, securities in the Company.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.
Latest directors dealings
- 1 day ago Savannah Energy
- 1 day ago Buccaneer Energy PLC
- 1 day ago Savannah Energy
- 1 day ago Carclo
- 1 day ago Schroder Japan Growth Fund