Circle Property has continued its disposal programme announced early this year, offloading an office in Birmingham and a block in a Bristol business park.
The AIM-listed company has exchanged on the £3.66m sale of 36 Great Charles Street in Birmingham to Posthandle. The deal is a near-30% discount on the seven-storey building’s 31 March 2022 valuation of £5.2m. Circle paid £2.5m for the asset in September 2015.
The company has also exchanged and completed the sale of 710 Aztec West to Harwood Business Parks Investment for £2.3m, a 10.7% discount to its 31 March valuation of £2.6m. Circle bought 710 and 720 Aztec West for a combined £4.2m in 2018, and sold 720 in May.
Circle said the proceeds of the sales will be held as cash with a minimum of two returns of capital made to shareholders from the first quarter of next year onwards.
The company announced its disposal plans in February, saying at the time: “Since admission to AIM, the company has suffered from limited liquidity in its shares and the share price has remained at a significant discount to the company’s NAV.
“Notwithstanding the strong financial and operational performance of the company since IPO and strategic execution, the structural discount in the company’s share price relative to its NAV persists. The board has therefore determined to continue to make targeted asset sales in an orderly manner over an extended period of two to three years, if not sooner.”
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