Elite UK REIT, a Real Estate Investment Trust based in UK, recently announced that its trustee, Perpetual (Asia) Limited, has successfully divested Crown Buildings, Caerphilly at Claude Road, Caerphilly for GBP710,000 ($1.2 million), which is an 18% premium over the property’s valuation.
In a filing with the bourse on March 3, the manager of Elite UK REIT stated that the vacant property was independently valued at GBP600,000 at the end of 2024 by CBRE. Located in Wales, Crown Buildings, Caerphilly was valued at GBP530,000 at the end of 2023.
The net proceeds from this divestment will be used to repay Elite UK REIT’s outstanding borrowings. According to the website of Elite UK REIT, Crown Buildings, Caerphilly has a gross floor area of 20,712 sq ft.
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After its successful GBP28 million preferential offering in January 2024, Elite UK REIT’s leverage ratio reduced from 50.0% at the end of 2023 to 43.4% at the end of 2024. Similarly, its net gearing ratio also decreased from 47.5% at the end of 2023 to 42.5% at the end of 2024.
Notably, there is no debt maturing in 2025 and 2026, and Elite UK REIT only has refinancing due in 2027. With this divestment, Elite UK REIT is well-positioned to strengthen its financial position and continue its growth in the coming years.