Perpetual (Asia) Limited, the trustee of Elite UK REIT, has recently sold Crown Buildings, Caerphilly located at Claude Road, Caerphilly for GBP710,000 ($1.2 million), representing an 18% premium. The transaction was reported in a bourse filing on March 3rd by the manager of Elite UK REIT.
According to the filing, the vacant property was independently valued by CBRE at GBP600,000 at the end of 2024. This is a significant increase from its value of GBP530,000 at the end of 2023. The proceeds from the divestment will be utilized to pay off Elite UK REIT’s outstanding borrowings.
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Elite UK REIT’s website states that Crown Buildings, Caerphilly has a gross floor area of 20,712 sq ft. The sale of this property comes after Elite UK REIT’s successful GBP28 million preferential offering in January 2024. This offering helped the company to decrease its leverage ratio from 50.0% at the end of 2023 to 43.4% at the end of 2024. Similarly, its net gearing ratio also declined from 47.5% to 42.5% during the same period.
Moreover, there is no debt maturing in 2025 and 2026 for Elite UK REIT, and the next refinancing is due in 2027. This reflects the strong financial position of the company and its ability to manage its debts effectively in the future.