Acquisition (8663B)
April 23 2012 - 8:30AM
UK Regulatory
TIDMSLI
RNS Number : 8663B
Standard Life Invs Property Inc Tst
23 April 2012
To: Company Announcements
Date: 23 April 2012
Company: Standard Life Investment Property Income Trust Limited
Subject: Acquisition
Standard Life Investments Property Income Trust is pleased to
announce it has exchanged contracts for the purchase of St James's
House in Cheltenham with completion due on Wednesday 25(th)
April.
The multi let office was built in 1982 but has had a major
refurbishment in 2000 and again in 2010 including the provision of
a new air conditioning system. The building is located close to the
town centre giving easy access to shops and transport hubs. The
building provides some of the best office accommodation in
Cheltenham, and let through the downturn at an average rent of
GBP12psf, giving scope for future growth. The property is let to 9
tenants, including Brewin Dolphin, Liberty Mutual, BPE Solicitors,
Barnett Waddingham, Gloucestershire Media, Bank of Ireland and the
Health and Safety Executive, with an average unexpired lease term
of 8 years (6.3 years to lease break).
The purchase price of GBP8.45m provides an initial yield of
7.6%, rising to 8.6% by December 2012, and then just over 10% when
the 4(th) floor is relet following a lease expiry and
refurbishment.
Jason Baggaley, fund manager of the Standard Life Investments
Property Income Trust said "This acquisition continues our strategy
of buying good quality offices in good locations and let to good
tenants, but with shorter leases to provide us with asset
management opportunities. The income yield from this property is
accretive to the revenue account, and the purchase utilises some of
the funds from the sale of Northern and Shell Tower (sale yield
7%). We will continue to invest into this style of investment where
we can add value through active asset management - we have already
secured 78% of all income at risk over the next two years through
lease expiry or break, and are excited by the opportunities this
purchase offers."
Following the purchase the Company will have cash of circa GBP6m
available to invest, and has had an offer accepted on a prime multi
let office in a major city for GBP4m.
All enquiries:
The Company Secretary
Northern Trust International Fund Administration Services
(Guernsey) Limited
Trafalgar Court
Les Banques
St Peter Port
Guernsey
GY1 3QL
Renee McIver
Tel: 01481 745324
Fax: 01481 745085
This information is provided by RNS
The company news service from the London Stock Exchange
END
ACQUOSARUBASUAR
Abrdn Property Income (LSE:API)
Historical Stock Chart
From Jun 2024 to Jul 2024
Abrdn Property Income (LSE:API)
Historical Stock Chart
From Jul 2023 to Jul 2024