European Real Estate Investment Trust has announced that it is to return €20.7m to shareholders by way of a compulsory partial redemption of shares. The capital return, which is equivalent to 115 pence per share, follows the sale of Panrico on 11 August 2016. The company says that the return represents a substantial proportion of those sale proceeds. This is the company’s seventh such redemption since shareholders approved wind-down proposals on 12 July 2011. The company says that it will be announcing further details in due course.
This follows the sale of the three industrial properties in Spain (Madrid, Valladolid and Cordoba) to Panrico, the tenant, for a net price of EUR24.2 million. The gross sale price of EUR24.6 million represents a premium of 9.1% over the valuation as at 30 June 2016. The Spanish assets represented about 70.8% of the portfolio value as at 30 June 2016.
The last remaining asset in the portfolio is La Gaude, in Nice. This office property is vacant and likely to have a higher value as an alternative use. Work continues with the local development authority to explore the best possible future use of the site, in parallel with considering all options to effect an early sale.
European Real Estate Investment Trust to return €20.7m following Panrico sale : ERET