15 March 2022
QUIDNET REIT LIMITED (the “Company”)
Trading Update
The year end accounts to 31st December 2021 are being audited and nearing completion for publication in the next few weeks. The rents and values have shown strong upward movement and the Net Asset Value will show an uplift higher than market expectations.
The Company is pleased to announce two acquisitions of industrial properties: firstly, the Company has completed on the purchase of a single vacant unit of 11,628 sq ft at 15 Edgemead Close Northampton NN3 8RG, for £750,000. This is adjacent to another property owned by the Company. The property is vacant, in need of a light refurbishment prior to reletting and we are already in discussions with potential occupiers.
Secondly, the Company has exchanged to buy a large property of 7.48 acres with 156,319sq ft, let to British Steel for just under three years, with a break clause a year earlier. There are multiple options for the property, either to relet to British Steel at a higher rent, or to refurbish and reprofile into much smaller units to let at much higher rents. It could also be suitable for residential redevelopment, since it already had an existing consent in 2013 which was allowed to lapse in 2016.
These acquisitions are being funded by increased bank debt, which is available due to the very low Loan To Value levels as the property values have risen. We are in ongoing discussions with our lender regarding new facilities for the medium term.
The Company continues to be optimistic about its internal prospects and the demand for industrial property, leading to more rental growth. However, this is subject to the unprecedented global situation, triggered by the invasion of Ukraine by Russia and what effect this may have on many economies in the short and medium terms.
Contact:
listings@ravenscroftgroup.com
+44 (0)1481 729100