Disposal and Debt Reduction (0046L)
July 25 2011 - 8:52AM
UK Regulatory
TIDMIERE
RNS Number : 0046L
Invista European Real Estate Trust
25 July 2011
25 July 2011
INVISTA EUROPEAN REAL ESTATE TRUST SICAF (the "Company")
INVISTA EUROPEAN REAL ESTATE TRUST COMPLETES EUR20.7 MILLION
SALE OF FRENCH LOGISTICS ASSET AND SECURES REDUCED DEBT COSTS
Invista European Real Estate Trust announces that it has
completed an important strategic sale which has enabled the Company
to reduce the Loan to Value ("LTV") on its senior debt facility and
therefore benefit, on an ongoing basis, from a reduced margin and
resultant lower interest charges.
Disposal
The Company has completed the sale of a 33,000 sqm prime
warehouse property located in Trappes, Paris to Cordea Savills for
a total consideration of EUR20.7 million.
The property, which was substantially extended and refurbished
by the Company during the last three years, is mainly let to Nature
et Decouvertes on the basis of a nine-year lease. The sale
consideration represents a 1.15% discount to the Company's 31 March
2011 independent property valuation.
Reduction of debt
Following on from the recent disposals in France and Poland and
in accordance with the stated strategy to reduce borrowings, all
sale proceeds have been applied to pay down debt. In addition,
EUR4.6 million from its existing cash balances has been applied to
reduce the senior loan facility with the Bank of Scotland to an LTV
ratio of less than 65%.
As advised in previous announcements, an LTV of less than 65%
triggers a lower loan margin with the Bank of Scotland, decreasing
from 2.50% per annum to 2.25% per annum. The 2.25% per annum loan
margin will be applied with immediate effect.
The saving in the interest charge, resulting from the reduced
quantum of debt and the lower margin, is EUR1.8 million per
annum.
Further information will be provided in the Company's Net Asset
Value and Interim Management Statement which will be announced on 3
August 2011.
- ends -
For further information, please contact:
Invista Real Estate
Tony Smedley/Chris Ludlam +44 20 7153 9369
Financial Dynamics
Dido Laurimore/Olivia Goodall +44 20 7831 3113
This information is provided by RNS
The company news service from the London Stock Exchange
END
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