LONDON, UK: London & Associated Properties (LAP) exchanged unconditional contracts to surrender its leasehold interest in Kings Square, West Bromwich to the freeholder, Sandwell Council for a premium of £4.75 million, representing a 5% discount to 2021 year-end valuation.
Completion is scheduled for 29 July 2022 and the proceeds will be reinvested in new real estate.
Kings Square forms part of a portfolio used as collateral for a 1997 debenture from Aviva expiring in August 2022 which LAP is in the process of refinancing.
The disposal continues LAP’s stated strategy of repositioning its portfolio away from shopping centres. Following the sale, the Company’s principal income-generating property assets comprise, by value: 19% industrial; 35% mixed-use retail with a strong food offer; 27% community-orientated town centre retail; and 19% other investments (including the current market value of LAP’s 41.5% holding in Bisichi PLC).
John Heller, LAP’s Chief Executive Officer, said: “The Board constantly reviews LAP’s mix of assets and is satisfied that our investments represent a combination of strong current income, diversified asset class risk and realistic opportunities for growth over the medium term.”