Industrials Reit chief sells shares to pay off loans

The huge amount of rented warehouse space in the first half of this year caused vacancy rates to drop to a historic low of 1.18%, but there are signs that fears over the health of the economy extract some of the heat from the market. .

Investment in industrial property in the UK fell to £1.6bn in the second quarter, from £4.6bn in the first, according to Colliers. As a result, the half-year figure of £6.2bn is down more than a fifth on the same period last year.

Investors in this market have done quite well in recent years, but given the outlook, it’s understandable that shareholders would want to lock in the gains – especially if, as a company associated with Industrials Reit (MLI) chief executive Paul Arenson , you borrowed a sum of money to pay them.

Lonat Ltd, owned by a trust of which Arenson is a beneficiary, borrowed £6.5 million from a subsidiary of the REIT in three separate tranches from 2015 to 2017. The loans were made under a purchase plan shares of the company at the REIT’s average borrowing rate of 2.16%, repayable in 10 years. Over 5 million shares have been pledged on the loans.

The REIT was listed in May 2018 and although its valuation saw some dips along the way, it generally enjoyed an upward trajectory until the end of last year, gaining 73% since inception to hit a high. from 204p in December. Shares fell by more than a quarter in the first half of this year, but have rallied since mid-July. Lonat capitalized on recent gains, cashing in 3.5 million shares on August 18 and using the net proceeds of £5.24 million generated to repay most of the loans. The balance of £1.26million was due to be repaid in cash a week later.

Industrials Reit said it would use the money to buy more multi-tenancy industrial properties. He said the commercial investment market “is experiencing volatility” but is well positioned to capitalize, with available cash ready to deploy and a relatively low loan-to-value ratio of 26%.

Arenson also still has skin in the game – following the Lonat sales, he has a “direct and indirect interest” in 13.6 million shares – a stake of around 4.55%.

Company Director/PDMR Date Price (p) Overall value (£)
Afentra Ian Cloke (coo) * 16-17 August 22 27 38,958
Coats David Gosnell (ch) ** Aug 15 22 64 100,000
Coats Rajiv Sharma (ce)** Aug 15 22 64 100,000
Coats Jackie Callaway (CFO)** Aug 15 22 64 75,000
Coats Jacob Sigurdson ** Aug 15 22 64 30,000
Coats Nicholas Taurus ** Aug 15 22 64 31,750
Convatec Sten Scheibye Aug 15 22 237 47,400
First group Peter Lynas 16 Aug 22 115 23,046
First group Graham Sutherland (ec) Aug 17 22 115 115,000
Global data Pierre Harness Aug 11 22 1,264 252,800
Gooch & Housego Gary Bullard (ch) * Aug 17 22 655 54,686
Integrated diagnostics Doctor Hend El Sherbini * 12 Aug 22 82 † 374,779 †
National Express Simon Callander (PDMR) Aug 11 22 189 94 274
On the beach Adam Hansen (PDMR) Aug 17 22 131 49,451
Segro Andy Harrison (ch) Aug 15 22 1,077 248 135
TMT investments Alexander Selegenev (PDMR) 18 Aug 22 293 † 83,824 †
TMT investments Artemii Iniutin / Alexander Morgulchik / German Kaplun (PDMR) * 18 Aug 22 293 † 167,645 †
UK Commercial Property Reit Michel Ayre * Aug 15 22 78 39,090


Company Director/PDMR Date Price (p) Overall value (£)
Bank of Georgia Zurab Kokosadze (PDMR) 18 Aug 22 1,921 96,065
Industrial REITs Paul Arenson (ce) * 18 Aug 22 175 5,250,000
Bank to be confirmed Tornike Gogichaishvili (PDMR) Aug 15 22 1,653 123,010
* Spouse/Family/Close associate. **Placement/offer open. †Converted from $

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