ING Real Estate has sold two buildings from one of its investment companies for a total £34.2m.
ING UK Real Estate Income Trust, a Guernsey registered closed-ended investment company, has sold a Tesco supermarket and an office building in a disposal of its non-core assets.
The 90,856 sq ft Tesco Supermarket and adjoining retail units, at Frodsham Street in Chester, has been sold to Tesco Stores for £32m.
The deal reflects a net initial yield of 4.84%.
The company has also sold Globe House, a 9,614 sq ft office building at Madeira Road in West Byfleet.
The building, multi-let to three separate tenants, was the smallest asset in the portfolio and was sold for £2.2m – reflecting a yield of 7.8%.
‘These transactions will in due course enable us to reduce the Company's non securitised borrowings and is consistent with our model to maximise income and improve our dividend cover,' said Michael Morris, the trust’s fund manager.