The abrdn Property Income Trust (API) has completed on the sale of its fifth asset so far this year, as part of its managed wind-down.
The investment company sold Bastion Point in Dover for £9.5m which, according to the board, is in-line with the asset’s June 2024 valuation but 4.8% below its March valuation. The asset had just over two years left on its occupational lease, while its sold price reflected an initial yield of 6.1%.
Mark Blyth, deputy fund manager of API, said: “This is the fifth asset sale that the company has completed this year, and the first since the shareholder vote to proceed with a managed wind down of the company. As outlined in previous communications on the managed wind down strategy, the available proceeds will be used to pay down the company’s revolving credit facility.”
In March this year, API attempted to merge with Custodian Property Income REIT. However, this fell through due to a lack of support from shareholders, with just 60% of votes cast in favour of the merger, which came in 15 percentage points below the minimum 75% threshold.
In May, shareholders voted in favour of a managed wind-down at an Extraordinary General Meeting.
API is currently trading on a 24.1% discount to net asset value and is 31% geared. It currently has a dividend yield of 7.22%.
