Perpetual (Asia) Limited, acting as trustee for Elite UK REIT, has sold Crown Buildings, Caerphilly, located on Claude Road in Wales, for GBP710,000 ($1.2 million) at an 18% premium. This decision was reflected in a filing to the bourse on March 3rd.
The independent valuation conducted by CBRE at the end of 2024 estimated the property’s value to be GBP600,000 while its value at the end of 2023 was GBP530,000. The vacant property covers a total gross floor area of 20,712 sq ft, according to Elite UK REIT’s website.
The net proceeds from the sale will be used to repay Elite UK REIT’s existing borrowings. The company has successfully reduced its leverage ratio from 50.0% at the end of 2023 to 43.4% at the end of 2024, following its successful GBP28 million preferential offering in January 2024.
Moreover, its net gearing ratio also dropped from 47.5% at the end of 2023 to 42.5% at the end of 2024. Elite UK REIT does not have any debt maturing in 2025 and 2026, and its refinancing is only due in 2027.