Business
Acquisition
Acquisition.
About this update from Alina Holdings Plc
[{"type":"text","content":"\n Local Shopping REIT (The) PLC\n23 August 2007\n\n23 August 2007\n\n\n\n The Local Shopping REIT plc announces first acquisitions\n\n since its April flotation\n\n\n\n\n\n(LONDON, 23 August 2007) - The Local Shopping REIT plc ('LSR'/'the Company'), a\nUK Real Estate Investment Trust focused on investments in local shopping assets,\nis delighted to announce its first acquisitions since its Admission to trading\non 2 May 2007, when it successfully completed an oversubscribed placing and\noffer for subscription, raising £160 million.\n\n\n\nPortfolio acquisition\n\n\n\nLSR has agreed to acquire the entire share capital of Gilfin Property Holdings\nLimited ('Gilfin') for £12.85 million. Gilfin is a privately owned property\ncompany with a portfolio of 28 properties which have been valued at £14.6\nmillion. Gilfin has net liabilities of £0.3 million and £1 million of\nassociated debt which will be repaid on the completion of the acquisition.\nApproximately half the portfolio, by value, is located in Scotland, while the\nrest is in south west London and the surrounding area.\n\n\n\n50% of the consideration will be satisfied in cash, with the remaining 50%\nsettled through the issue of 3,897,246 LSR shares. The portfolio produces a rent\nof £967,038 per annum which is anticipated to rise to £1,044,268 per annum when\nfully let at a market rent.\n\n\n\nCompletion of the acquisition of the shares in Gilfin is conditional on\nadmission of the LSR shares being issued to the current shareholders of Gilfin.\nApplication has been made for the 3,897,246 shares to be admitted to the UK\nOfficial List and to trading on the London Stock Exchange on 29 August 2007.\nThe shares will rank pari passu with the Company's issued ordinary shares.\n\n\n\nSingle assets\n\n\n\nIn addition, the Company is pleased to confirm that, in line with the business\nplan set out in its Admission Document, it has acquired 79 additional properties\nfor a total consideration of £20.7 million. The blended yield of these units is\n7.38%. As a result of these purchases, the Company now has a portfolio of some\n560 assets, comprising over 1,700 letting units.\n\n\n\nMike Riley, LSR's Joint Chief Executive Officer, commented:\n\n\n\n'As stated in our Prospectus, we anticipated that our REIT status would enable\nus to offer competitive prices and a tax efficient solu...