To:
Company Announcements
Date:
07 September 2020
Company:
Standard Life Investments Property Income Trust Limited
LEI:
549300HHFBWZRKC7RW84
SLIPIT Investment
Transaction & Rent Collection
Standard Life Investments Property Income Trust (“SLIPIT or the
Company”) has completed the purchase of a B&Q Retail Warehouse
in Halesowen for £19.5m, financed by its low cost revolving credit
facility.
The purchase reflects an initial yield of 7.5% and is let to
B&Q Ltd for a further 11 years to lease expiry.
Oli Lord, Deputy Fund Manager of
SLIPIT commented: “We are pleased to have completed the purchase of
this retail warehouse unit which will provide secure income given
the strong tenant covenant and good unexpired lease term. In
addition, the property’s configuration and attractive location in
the West Midlands also provides flexibility of use in the longer
term.”
Jason Baggaley, Fund Manager,
commented: “At a time of great turmoil it is sometimes tempting not
to do anything, however this asset fits our strategy exceptionally
well, providing secure long income on an asset that not only works
for the existing tenant, but also has future potential for urban
logistics. We believe the asset is a great addition to the
portfolio.”
Rent Collection
The Company has been working closely with its tenants and
confirms that the rent collection rate as at 31st August for what
can collectively be termed advance billing for the second quarter
of the year now stands at 87% and for the third quarter it stands
at 75%, which the Company expects to increase to 80% on payment of
September monthly rents. This compares to 69% reported for the
third quarter on the 3rd August. In addition to these
collection figures, there are a number of agreements that have been
completed with tenants that include monthly payment arrangements
and deferred rent payments not fully reflected in these figures.
The Company has also agreed a number of lease extensions in return
for rent free periods.
All enquiries to:
Jason Baggaley - Fund Manager
Tel: 0131 245 2833
E-mail:
jason.baggaley@aberdeenstandard.com
Oli Lord
- Deputy Fund Manager
Tel: 0131 245 6077
E-mail: oli.lord@aberdeenstandard.com