RNS Number : 1048L
  Standard Life Invs Property Inc Tst
  05 January 2009
   

    To:             Company Announcements
    Date:          05 January 2009
    Company:  Standard Life Investment Property Income Trust Limited


    Interest rate swap and loan facilities 

    SLIPIT has taken the opportunity presented by current market conditions to alter its loan and interest rate hedging arrangements with
effect from 1 January 2009.   

    SLIPIT has a term loan facility with the Royal Bank of Scotland for �84.4m, maturing in December 2013. To date the interest payable on
this facility has been calculated as 3 month LIBOR plus a margin of 0.6%. The majority of the floating interest rate risk associated with
this loan facility has been hedged through an interest rate swap under which the Trust receives 3 month LIBOR and pays a fixed rate of
5.115% (�72m notional value, also maturing in December 2013).   

    Under the new arrangement applicable from 1 January 2009 the interest payable under the loan facility will be calculated with reference
to 1 month LIBOR rather than 3 month LIBOR (the margin remains at 0.6%). In addition, the Trust entered into a new interest rate swap with
the result that from 1 January 2009 onwards the Trust will effectively receive 1 month LIBOR and pay a fixed rate of 5.015% (this is a net
position resulting from two separate interest rate swaps, notional value on both contracts being �72m). Both the loan facility and interest
rate swap arrangements continue to have maturity dates ending in December 2013. 

    As a result of implementing the new interest rate swap the Trust will reduce its loan interest costs by �72,000 per annum through to
2013 (0.1% of the value of the loan facility that is hedged). 

    On the unhedged part of the loan facility (�12.4m), switching from paying 3 month LIBOR to paying 1 month LIBOR will further reduce the
Trust's loan interest cost by �6,100 in respect of the month ending 31 January 2009. The difference between 1 month and 3 month LIBOR rates
in the future will however fluctuate in accordance with conditions in the money markets. 

    No arrangement fees were incurred in relation to these changes. 


    The Company Secretary 
    Northern Trust International Fund Administration Services (Guernsey) Limited
Trafalgar Court
    Les Banques
    St Peter Port
Guernsey
    GY1 3QL

    Tel: 01481 745324
    Fax: 01481 745051
    END

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