ASLI ($ASLI.L) completed the sale of their penultimate asset in Ede, The Netherlands for €23.5m, €23.0m of proceeds net of an agreed €0.5m worth of climate-related remedial works.

This price reflects a ~6.4% yield and €590 per square meter. This was always one of their weaker assets despite good lease length and tenancy (leased to AS Watson subsidiary, Kruidvat, with ~7.5yr remaining) due to its age, building configuration, and location. Sale underperformed my valuation estimate by ~10% - a 6.0% yield was insufficient margin of safety!

The Iran conflict and its impact on energy prices, inflation, and interest rates in the EU also undoubtedly had an impact on pricing. Their last remaining asset in Ede is a better asset (newer, better location) albeit a long leasehold with a shorter WALT.

Den Horn, Netherlands: I value at ~€45m, 5.75% yield / €1,000 per square meter. Built in 2020, leased to Van der Helm, a Dutch 3PL with ~4yrs of remaining lease term. Located in a good distribution location between Rotterdam and the Hague where market rents have risen and are nearing €100 per sq m. The property is arguably under-rented. Rental income of €3.6 (€85 PSF) at a ~93% NRI margin and less €0.7m of ground lease payments results in €2.6m of NRI. They acquired the property for €50m in Jan 2020 at a 4.5% yield.

Valuation

Now trading ex-dividend for the two May dividend payments, and leaving my Den Horn valuation unchanged, I see net liquidation value per share of €0.24. The current share price of €0.21 represents a 13% discount.

I have incorporated an additional €5.0m of costs in excess of income received to the December 2025 liqudation liabilities and potential latent capital gains tax in anticipation that the final liquidation process could last into the fall. This brings total liquidation liabilities to ~€20m.

The current share price implies a ~8% yield and €755 per square meter for Den Horn.

My liquidation value estimate is probably now on the higher end of likely net proceeds. But I think the chances of losing money from here at the current share price is unlikely. That being said if the liquidation completes in the next 3 - 6 months (by August or November), this would results in annualized returns of 30% - 60%. If Den Horn is sold for 6.5%, in-line with this Ede sale, the discount to NLV falls to 8% and 3 - 6 month returns decline to 18% - 36%.

Having added to this position at a price that was overly optimistic and I think will at best result in breaking even, I’m taking a hard look at my instinct to add to the position here. But I’m tempted.