Ground Rents Income Fund sells largest asset for £8 million
Ground Rents Income Fund PLC on Tuesday announced the sale of its largest asset, a freehold ground rent interest at Lawrence Street in York, England, for £7.9 million.
The sale of the asset, a purpose built student accommodation operated by Vita Student Management Ltd, reflects a net initial yield of 4.2% based on the current annual rent of £356,455.
The disposal is part of the company’s new policy ‘to sell assets where possible to optimise the net realisation value of the company’s investments’.
The asset was part of the security for the company’s loan from Santander UK PLC. New loan terms from March 2024 require all proceeds from charged asset disposals to be used to repay debt. The value of the remaining assets charged to Santander is £31.1 million.
The company said further assets are being marketed for disposal and a full update will be included in year-end results in December.
Shares in Ground Rents Income Fund gained 2.3% to 21.18 pence in London on Tuesday afternoon.
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