Invista Foundation Property Trust Limited has exchanged unconditional contracts to sell its 21.6% share in the joint venture that owns Portman Square House, London W1 for 拢23.11 mln. The deal is part of the disposal of the entire long leasehold property interest. Completion of the transaction is expected on 31 March 2010. The company's share in the property currently produces a rental income of 拢1.9 mln per annum.
Invista Foundation Property Trust Limited has exchanged unconditional contracts to sell its 21.6% share in the joint venture that owns Portman Square House, London W1 for 拢23.11 mln. The deal is part of the disposal of the entire long leasehold property interest. Completion of the transaction is expected on 31 March 2010. The company's share in the property currently produces a rental income of 拢1.9 mln per annum.
The price reflects a premium of 拢3.13 mln or 16% on the independent valuation as at end-September 2009 of just under 拢20 mln. Portman Square House is let at an average office rent of 拢79.34 per sq ft and has an average unexpired lease term of 5.65 years.
The disposal follows the successful completion of a significant rent review in October 2008 and supports the company's strategy of selling assets where asset management initiatives have been completed. The company expects to invest the proceeds in new acquisitions and ongoing income-enhancing asset management initiatives. Further details will be provided in the next quarterly Net Asset Value announcement in January 2010.
