LEI:
213800BMY95CP6CYXK69
8 March
2024
ALPHA REAL TRUST LIMITED
("ALPHA REAL TRUST" OR THE "COMPANY")
SALE OF H2O SHOPPING CENTRE
INVESTMENT, MADRID
Alpha Real Trust Limited announces
the sale of the H2O shopping centre ("H2O") in Madrid. ART has a
30% stake in a joint venture with CBRE Investment Management that
owns the shopping centre.
The sale price for H2O of €111m
represents an annualised net initial yield of 7.5% based on the
forecast 2024 net operating income and capital expenditure budgeted
by the purchaser. The transaction is subject to a limited number of
conditions which are required to be satisfied for closing. Closing
is anticipated to occur during the second quarter of 2024, but no
later than 31 July 2024, following fulfilment of the conditions
precedent.
Under Alpha Real Trust's ownership
the shopping centre has benefited from a near 50% increase in
annual visitor numbers. Alpha Real Capital, the Company's
Investment Manager has actively managed the asset and through the
addition of top tier brands and targeted capital expenditure has
successfully repositioned the centre. The shopping centre's
leasable area has been extended, partly enabled by the transfer of
building rights from a nearby separate vacant site, strategically
acquired for that purpose. This has permitted a new retail box and
two drive thru restaurant units to be created on the shopping
centre's surface car park. More recently it has facilitated a major
reconfiguration and upgrade of a mall area to create a new
3,000m2 anchor tenant unit pre-leased to Primark.
Further anchor tenants, including a number of Inditex group's
brands, have recently extended and upgraded their
stores.
Upgrades to the property have
resulted in a BREEAM certification being awarded and the centre
receiving a two notch uplift in its energy rating, resulting in a
Green Loan certificate being granted from the lending
bank.
The sale would result in a receipt
of €14.5m in net proceeds to ART and would reduce net asset value
by approximately 4p per share.
Gordon Smith Joint Fund Manager ART
commented: "Since its acquisition by the Company, H2O has undergone
a significant operational and commercial enhancement. The Company's
targeted capital expenditure has focussed on projects capable of
delivering an identifiable return on investment, delivering an
enlarged leasable area and upgraded tenant mix. The sale of H2O
represents an opportunity for the Company to recycle capital into
its broader investment strategy. ART currently focuses on
selectively increasing its loan portfolio and opportunistically
extending its wider investment strategy to target high return
property investments offering inflation protection via index linked
income adjustments and investments that have potential for capital
gains."
For further information please
contact:
Alpha Real Trust Limited
William Simpson, Chairman, Alpha
Real Trust
+44 (0) 1481 742 742
Brad Bauman, Joint Fund Manager,
Alpha Real
Trust
+44 (0) 20 7391 4700
Panmure Gordon, Broker to the Company
Atholl Tweedie
+44 (0) 20 7886
2500
Further information on the Company
can be found on the Company's website: www.alpharealtrustlimited.com.