ING sells assets

ING UK Real Estate Income Trust is continuing to sell non-core assets across its portfolio. The company made two disposals during the last quarter of 2010 and one since for a combined proceed of £1.55m at an average 13 percent premium to valuation. Two of the assets were non-income producing.

ING said the valuation movements across the portfolio remained consistent with the wider market and activity on the portfolio. The company also completed 10 new lettings which, following the expiry of rent-free periods, will provide an annualised rent roll of £500,000.

It reported good progress at 50 Farringdon Road, in the City of London, where the company is scheduled to complete the refurbishment of around 30,000 sq ft of office space during February and it says strong occupier interest has been shown ahead of practical completion of the scheme.

ING’s portfolio had a net initial yield of 6.9 percent and a net reversionary yield of 7.8 percent as of the end of last year. The occupancy rate is 90.3 percent and the average lease length is 7.9 years. The unaudited Net Asset Value as of the end of last year rose 1.7 percent over the quarter to £206.9m.