Perpetual (Asia) Limited, the trustee for Elite UK REIT, has recently completed the sale of Crown Buildings, Caerphilly for a total of GBP710,000 ($1.2 million). This sale represents an 18% premium over the property’s initial value. The sale was announced in a bourse filing on March 3 by Elite UK REIT.
The property was valued at GBP600,000 at the end of 2024, based on an independent assessment conducted by CBRE. Crown Buildings, Caerphilly is located in Wales and was valued at GBP530,000 at the end of 2023. Net proceeds from the sale will be used to pay off Elite UK REIT’s outstanding debts.
According to Elite UK REIT’s website, Crown Buildings, Caerphilly has a gross floor area of 20,712 sq ft. The successful GBP28 million preferential offering in January 2024 has helped Elite UK REIT to reduce its leverage ratio from 50.0% at the end of 2023 to 43.4% at the end of 2024. The company’s net gearing ratio has also decreased from 47.5% at the end of 2023 to 42.5% at the end of 2024.
The good news for Elite UK REIT is that there is no debt maturing in 2025 and 2026, and the next round of refinancing is not due until 2027. This gives the company time to continue its successful operations and generate further growth and profits for its shareholders.