abrdn Property Income Trust Limited Asset Management Update

 
TIDMAPI 
 
abrdn Property Income Trust Limited 
 
(an authorised closed-ended investment company incorporated in Guernsey with 
registration number 41352) 
 
LEI Number: 549300HHFBWZRKC7RW84 
 
(The "Company") 
 
30 OCTOBER 2023 
 
ASSET MANAGEMENT UPDATE 
 
Following the positive letting transactions completed during the first half of 
the year, abrdn Property Income Trust (API) is pleased to be able to announce 
some further asset management activity that has secured over £1.3m p.a. in rent 
through new lettings and lease renewals. 
 
In the office sector, the lease over the fourth floor at One Station Square in 
Bracknell has now completed, securing a rent of £132,250 p.a.  At The Pinnacle 
in Reading, our existing tenant Egnyte Limited has upsized on the fifth floor, 
taking 4,174 sq.ft at an annual rent of £130,000.  This rent is 11% ahead of the 
March 2023 valuation.  The lease over the first floor at 160 Causewayside, 
Edinburgh has been regeared with the removal of the tenant break option.  This 
has secured £157,000 p.a. of rent for a further 5 years. 
 
At 54 Hagley Road in Birmingham, the previously reported lettings to the Chamber 
of Commerce and UK Cab have now completed following the conclusion of the 
landlords works.  Combined, these reflect a total of 27,770 sq.ft and £538,090 
p.a. in rent.  The positive momentum at this building has continued with a 
letting of part of the 4th floor to Property Investor Network, securing a rent 
of £49,830 p.a. Terms have also been agreed on two further lease renewals of 
9,365 sq.ft where the tenants are remaining in their existing suites and the 
rents are increasing by an average of just over 30% from previous levels. 
 
Refurbishment works at our logistics unit on Rainhill Road in Washington are 
progressing well (including the completion of a new 1,150kWp PV scheme on the 
roof) and are due to complete in early November. The unit is let under an 
agreement for lease and the new 15-year lease will start then. This letting, 
along with the others completed since quarter end, will reduce the void rate as 
at 30 September from 8% to 4.4%. 
 
This activity demonstrates that API's investment strategy of investing in assets 
that tenants want to occupy remains relevant. The API office assets, which 
account for just under 18% of the overall portfolio, continue to be attractive 
to occupiers with good levels of amenity at attractive rental levels even in a 
market with significantly reduced demand and take-up. 
 
In the industrial sector, API is pleased to announce completion of a lease 
regear at Monkton Business Park in Hebburn.  Hitachi Construction Machinery (UK) 
Limited have taken a new 20-year lease at a passing rent of £310,500 p.a., which 
is an increase of 19.4% over the previous passing rent.  As part of the 
transaction, Hitachi are obliged to carry out a package of works that are 
anticipated to improve the EPC rating to an "A". 
 
The EPC on API's Bolton industrial unit let to DPD has recently been reassessed 
following completion of the letting and the landlord's refurbishment works.  API 
took the opportunity, at the expiry of the previous lease, to carry out an 
extensive package of upgrades to the unit including the extension of the roof 
-mounted solar panel installation, an increase in on-site biodiversity and the 
inclusion of staff welfare facilities.  Following the reassessment, the EPC has 
been lodged as an "A" with a score of -54.  This negative score reflects the 
fact that the unit is operationally carbon negative. 
 
API's speculative 107,000 sq.ft industrial development at Knowsley is 
progressing well, with practical completion scheduled for the turn of the year. 
The unit will be a best in class building with enhanced ESG credentials, and 
this has been reflected in the occupational interest received to date.  Whilst 
early days, we have received proposals from two parties and are hopeful of 
agreeing a letting of the unit ahead of completion. 
 
Mark Blyth, Deputy Fund Manager of API commented: "Despite challenging market 
conditions, we continue to have good success letting our void properties as well 
as retaining existing occupiers with lease regears.  Reducing void property 
costs and increasing rental income, whilst at the same time ensuring a strong 
focus on ESG, will strengthen API's overall financial standing and position it 
well for the future." 
 
All Enquiries: 
 
Jason Baggaley - Real Estate Fund Manager, abrdn 
 
Tel: 07801039463 or  jason.baggaley@abrdn.com 
 
Mark Blyth - Real Estate Deputy Fund Manager, abrdn 
 
Tel: 07703695490 or mark.blyth@abrdn.com 
 
END 
 
 
This information was brought to you by Cision http://news.cision.com 
 
 
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