Business
Disposal and Investment Adviser Purchase of Shares
Disposal and Investment Adviser Purchase of Shares.
About this update from Alternative Income Reit Plc
[{"type":"text","content":"\n \n \n RNS Number : 8489U\n Alternative Income REIT PLC\n 03 August 2020\n \n \n \n \n 3 August\n 2020\n \n \n \n Alternative Income REIT \n \n \n plc\n \n \n \n (the \"\n \n Company\n \n \" or \"\n \n Group\n \n \")\n \n \n DISPOSAL OF THE WET 'N' WILD WATER PARK ASSET\n \n \n PURCHASE of COMPANY shares By investment advisEr\n \n \n The Board of Directors of \n Alternative Income REIT plc\n (ticker: AIRE), the owner of a diversified portfolio of UK commercial property assets predominantly let on long leases,\n is pleased to \n announce the disposal of the Wet 'n' Wild Water Park, North Shields, for a total consideration of £3,204,500 to Serco Leisure Operating Limited, the tenant and a wholly owned subsidiary of Serco Group plc:\n \n \n ·\n representing a 9.7% uplift on purchase price and a 12.4% premium on book value (as at 30 June 2020);\n \n \n ·\n reflecting a net exit yield of 6.0%, which compares with the net acquisition yield of 6.2% paid by the Company in September 2017; \n and\n \n \n ·\n generating an \n ungeared IRR for the Company of 8% per annum\n and a geared IRR of more than 10%\n .\n \n \n \n \n \n The Wet 'n' Wild Water Park was pledged as part of the security for the Group's senior debt financing from Canada Life. The structure of the facility means there is no allocated loan amount, release price or \n other costs resulting from the sale\n \n of the a\n sset.\n The tenant decided to cease operations at the assetin February 2020.\n \n \n \n \n \n The Group intends to redeploy the proceeds of the sale into its growing pipeline of accretive investment assets in short order.\n \n \n \n \n \n The Board notes\n that the Company's Investment Adviser, M7 Real Estate Limited (\"M7\"), \n a leading specialist in the pan-European, regional, multi-tenanted real estate market,\n has purchased and now owns 1,000,000 Ordinary Shares in the Company at a price of 59 pence per share.\n \n \n \n \n \n Steve Smith\n , Chairman of Alternative Income REIT \n plc, commented:\n \n \n \"\n We are pleased to have completed the disposal of the Wet 'n' Wild Water Park asset at a significant premium to acquisition cost and book value, enabling the Group to recycle the proceeds into an accretive investment in short order.\n \n \n \n \n \n The acquisition of shares in the Company by M7, the Compa...