abrdn Property Income Trust
Limited
(an authorised closed-ended investment company incorporated in
Guernsey with registration number 41352)
LEI Number: 549300HHFBWZRKC7RW84
5 October 2022
DISPOSAL, ASSET
MANAGEMENT AND VALUATION UPDATE
abrdn Property Income (API) has completed the sale of an
industrial investment in Rainham, East
London for £21.65m, reflecting a yield of 2.84%. The
property was the lowest yielding asset in the portfolio, and the
sale price represented a discount to the end June valuation of
2.7%. The asset was purchased in late 2007 for £7.5m and has
provided a return of 14.5% per annum from purchase to 30 June 2022. The sale follows the disposal of an
office in Kidlington earlier in the quarter above valuation.
Proceeds of the sales are being used to pay down the drawn RCF.
On 30 June the portfolio vacancy rate was 10.2%. Since that date
the Company has completed two exciting lettings. Firstly, a
logistics unit representing 1.8% of portfolio income has been let
subject to the Company completing a refurbishment (lease completion
expected June 2023). The
refurbishment will lead to an operational carbon net zero EPC A
unit let at a rent 59% above the previous rental level. Secondly,
the Company has also completed the letting of another logistics
unit that has been refurbished to become EPC A and operational net
zero carbon. The new rent represents 1% of fund ERV, again
demonstrating strong growth on the previous rent at the
property.
Markets are obviously very volatile at the moment and this is
likely to continue. The Company’s portfolio has been valued as at
30 September, which will form the basis of the 30 September NAV to
be announced in early November. The property valuation has
decreased 4.2% on a like-for-like basis, which we believe will be
similar to the MSCI index.
Jason Baggaley, Fund Manager of
API commented “The sale of the asset in Rainham was a bitter-sweet
moment for me. It was the first asset I bought for the Company,
back in 2007. A year after purchase, as we went through the
financial crisis, that purchase did not look so great, but as we
exit now, it is a good reminder that, despite short term bumps
along the road, well located assets that meet the needs of
occupiers perform well over the longer term. We are in another
“bump” currently, with a lot of uncertainty, but I remain confident
that the portfolio continues to offer good quality, well located
properties that are affordable, and meet occupier needs. The recent
successful lettings of the two logistics units further demonstrate
that.”
All Enquiries:
Jason Baggaley – Real Estate Fund
Manager, abrdn
Tel: 07801 039463 or jason.baggaley@abrdn.com
Mark Blyth – Real Estate Deputy
Fund Manager, abrdn
Tel: 07703 695490 or mark.blyth@abrdn.com