In a recent announcement, Elite UK REIT’s trustee, Perpetual (Asia) Limited, successfully sold its property known as Crown Buildings, Caerphilly, located at Claude Road, Caerphilly, for a total of GBP710,000 ($1.2 million). This sale was made at an 18% premium, demonstrating the strong demand for this vacant property.
This transaction was disclosed in a filing with the bourse on March 3, made by Elite UK REIT’s manager. The property, which was evaluated by CBRE, had a value of GBP600,000 at the end of 2024. This is a significant increase from its valuation of GBP530,000 at the end of 2023.
Crown Buildings, Caerphilly is situated in Wales and boasts a gross floor area of 20,712 sq ft. After the successful sale, the net proceeds will be utilized to pay off any outstanding borrowings for Elite UK REIT.
According to information provided on Elite UK REIT’s website, Crown Buildings, Caerphilly has an impressive floor area of 20,712 sq ft. This adds to the property’s appeal and likely contributed to the heightened interest in its sale.
The sale comes after Elite UK REIT’s successful GBP28 million preferential offering in January 2024. This has had a significant impact on the company’s leverage ratio, which has now reduced from 50.0% at the end of 2023 to 43.4% at the end of 2024. Similarly, the net gearing ratio has also dropped from 47.5% at the end of 2023 to 42.5% at the end of 2024.
The company’s financial position is further reinforced by the fact that it does not have any debt that is due for repayment in 2025 or 2026. This provides a stable foundation for Elite UK REIT, with its next refinancing only due in 2027. This strategically positions the company for continued success in the future.