REG - Alternative Inc REIT - Disposal of hotel in Glasgow

Alternative Income REITAnnouncement

09/08/2023 07:00

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RNS Number : 7144I  Alternative Income REIT PLC  09 August 2023

9 August 2023

Alternative Income REIT PLC

(the "Company" or "Group")

£7.5 MILLION SALE OF HOTEL IN GLASGOW AT 7.9% PREMIUM TO BOOK VALUE AT 30
JUNE 2023

The Board of Directors of Alternative Income REIT PLC (ticker: AIRE), the
owner of a diversified portfolio of UK commercial property assets
predominantly let on long leases with inflation-linked reviews, is pleased to
announce that it has completed the sale of the Mercure City Hotel, Ingram
Street, Glasgow, for a total consideration of £7,500,000 to the current
tenant S Hotels & Resorts (UK) Limited. This property represented 6.5% of
the Group's portfolio at 30 June 2023. The disposal represents:

·      a 7.9% premium (approximately £550,000) on the book value at 30
June 2023; and

·      reflects a net exit yield of 8.9%.

 

Based on the 30 June 2023 valuations, the transaction reduces the Group's LTV
from 41.6% to 36.7%, whilst the interest cover ratio is 556.3% on the Group's
debt facility, which is fixed at 3.19% and matures in October 2025. The Group
intends to redeploy the proceeds from this into additional investment assets
as soon as practical.

 

Simon Bennett, Non-Executive Chairman of Alternative Income REIT PLC,
commented:

"We are pleased to sell the hotel in central Glasgow at an attractive 7.9%
premium to book value. The sale will enable the proceeds to be recycled into
one or more properties as the Group seeks to achieve further diversification
of the portfolio's tenants and assets."

 

ENQUIRIES

 Alternative Income REIT PLC                   via H/Advisors Maitland below

 Simon Bennett - Chairman

 M7 Real Estate Ltd                            +44 (0)20 3657 5500

 Richard Croft
 Jane Blore

 Panmure Gordon (UK) Limited                   +44 (0)20 7886 2500
 Alex Collins
 Tom Scrivens

 H/Advisors Maitland (Communications Adviser)  +44(0) 7747 113 930
 James Benjamin                                aire-maitland@h-advisors.global

 

The Company's LEI is 213800MPBIJS12Q88F71.

 

Further information on Alternative Income REIT PLC is available at
www.alternativeincomereit.com (about:blank) (1)

 

About the Group

Alternative Income REIT PLC aims to generate a sustainable, secure and
attractive income return for shareholders from a diversified portfolio of UK
property investments, predominately in alternative and specialist sectors. The
majority of the assets in the Group's portfolio are let on long leases which
contain inflation linked rent review provisions, which help to underpin income
distributions to shareholders with the potential for income and capital
growth.

 

The Company's Investment Adviser is M7 Real Estate Limited ("M7"). M7 is a
leading specialist in the pan-European, regional, multi-tenanted real estate
market. Majority owned by its senior managers, it has over 200 employees in 15
countries across Europe. The team manages over 620 properties with a value of
circa €6.9 billion.

 

Notes

1      Neither the content of the Company's website, nor the content of
any website accessible from hyperlinks on its website or any other website, is
incorporated into, or forms part of, this announcement nor, unless previously
published on a Regulatory Information Service, should any such content be
relied upon in reaching a decision as to whether or not to acquire, continue
to hold, or dispose of, securities in the Company.

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