Elite Uk Reit Divests Vacant Wales Property 18 Above Valuation

In a recent announcement, Elite UK REIT announced the divestment of Crown Buildings, Caerphilly for GBP710,000 ($1.2 million) at an 18% premium. The trustee of the REIT, Perpetual (Asia) Limited, confirmed the sale in a filing to the bourse on March 3.

The vacant property, located in Wales, was valued at GBP600,000 at the end of 2024, based on an independent valuation by CBRE. This represents a rise from its valuation of GBP530,000 at the end of 2023.

According to the manager of Elite UK REIT, the net proceeds from the sale will be used to repay outstanding borrowings. The property, which has a gross floor area of 20,712 sq ft, was originally acquired by the REIT in 2016.

Elite UK REIT had recently raised funds through a successful GBP28 million preferential offering in January 2024, which helped to reduce its leverage ratio from 50.0% at the end of 2023 to 43.4% at the end of 2024. Similarly, the net gearing ratio decreased from 47.5% to 42.5% during the same period.

The REIT also reported that it has no debt maturing in 2025 and 2026, with refinancing only due in 2027. This provides the REIT with a stable financial outlook for the next few years.