Invista European Real Estate Trust is seeking shareholder approval to sell all its existing properties. As a means of executing this new strategy, the Luxembourg-based real estate investment firm has appointed Internos Real Investors to serve as its new manager.
According to an announcement issued by Invista's board of directors, Internos will take over the management of Invista and its assets. Additionally, Internos will conduct a full strategic and operational review of all aspects of Invista's property portfolio, banking facilities and administrative arrangements.
The initial focus of the new strategy will be to reduce management costs by selling properties in an appropriate state to be sold and properties in markets where the company has little exposure.
The proceeds from the sales will be used to repay the firm’s debt in the first instance and thereafter return capital to shareholders within a targeted timescale of approximately three years.
“Subject to the approval by shareholders of the proposed revised investment objectives, all existing properties will be sold as expeditiously as is consistent with the protection of value, with an initial focus on those properties already optimised for sale and those in markets where IERET has few assets, so as to reduce property management costs,” said the firm in its announcement.
In addition, Invista’s directors said that new property would not be acquired unless deemed essential to protect or enhance the value of its existing assets by the board following advice from Internos.