ING To Complete Repayment Of Non-Securitised Borrowings On Time

Mon, 08 Sep 2008

ING UK Real Estate Income Trust Ltd has announced the sale of a retail property for £10.5m to Waitrose, in a deal which will help it to pay back its non-securitised borrowings earlier than expected.

The Guernsey registered closed-ended investment company said the sale, which represents a net initial yield of 3.57 per cent, will enable it to complete repayment on its outstanding non-securitised borrowings by September 19.

Since its asset disposal programme began in 2007, the company has sold nine assets for a total of £84m at a weighted yield of 4.28 per cent and a cumulative premium of 3.5 per cent to that of the June 2007 valuation.

Michael Morris, the company’s fund manager, said: "We are pleased, particularly in this market, to have made a further disposal which enhances NAV and is income accretive."

"This transaction concludes a successful programme of sales which enables us to fulfil our strategy of paying down the company’s more expensive non-securitised borrowings early."

He added: "Future sale proceeds will be used to provide further headroom against loan covenants should market conditions require."
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