Local Shopping puts up 'for sale' sign

Local Shopping REIT has put itself up for sale after struggling to grow the business during a period of recurring recessions.

The real estate investment trust (REIT) was established with the aim of becoming a market leading owner of shops in the UK, but things have not gone to plan, resulting in the directors launching a strategic review to consider how value can be maximised for shareholders.

A committee appointed by the board will consider all strategic options, including carrying on as before.

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The group said that its joint venture partners have been given fair warning about the strategic review, and they have been notified that the company may seek to alter its commitment to some or all of these joint ventures. These changes may well result in a breach of the terms of the joint venture agreements which in turn may prompt action by the joint venture partners. Local Shopping REIT has around £5.6m invested within all three of its joint ventures.

Shares in the company had been trading at a 52-week low prior to the announcement of the strategic review.

JH