119-year-old FTSE 250-listed investment trust releases £33.5 million for reinvestment in physical assets
London 29 February 2024: TR Property Investment Trust (TR Property) today announces the sale of The Colonnades to a private family office, for £33.5 million.
TR Property carried out significant asset management on the property, adding 16,000 sq ft of new space through a comprehensive refurbishment in 2015 and doubling the size of the supermarket to 44,000 sq ft, which was let to Waitrose on a 20-year lease.
The property comprises a large, fully let, mixed-use block in Bayswater, constructed in the 1970s. The site extends to approximately two acres on the northeast corner of the junction of Bishop’s Bridge Road and Porchester Road, close to Bayswater tube station. The residential upper parts were sold in 2022 for £5m.
Whilst TR Property is best known as an investor in real estate investment trusts (REITs) and other listed property companies, it can hold up to 15 per cent of its assets in physical UK real estate. The Trust’s closed-ended structure means it is invulnerable to the illiquidity and gating issues that have dogged the open-ended property fund sector.
The sale of The Colonnades is in line with TR Property’s strategy to recycle capital out of mature assets.
George Gay, Direct Property Fund Manager at TR Property comments: “Through this sale we have been able to unlock in excess of £30 million to invest into higher-yielding assets such as multi-let light industrial. Having transformed the Colonnades, this is the right time to exit and turn towards future opportunities and growth.”
About TR Property Investment Trust
TR Property Investment Trust is listed on the London Stock Exchange (ticker: TRY). The trust was set up as an investment trust in 1905 and has focused solely on the property sector since 1984. It offers diverse exposure to the UK and European property market, primarily through real estate equities and a small proportion of UK physical assets, seeking long-term capital growth and a growing dividend. TR Property’s core management team has worked together for more than 20 years, led by fund manager Marcus Phayre-Mudge.
