IPI Invesco Pty

 
TIDMIPI 
 
INVESCO PROPERTY INCOME TRUST LIMITED 
 
HEADLINE: Disposal and leasing activity 
 
The Directors are pleased to announce the successful completion of a number of 
asset management initiatives within the UK portfolio and the unconditional 
exchange of contracts for the sale of one UK property. 
 
Unconditional contracts were exchanged on 18th January for the sale of Staines 
Road, Hounslow, for GBP4.35m, with completion due on 15th February.  This price 
is 16%, or GBP600,000, ahead of the December 2010 valuation. This sale will 
benefit IPIT as the property is currently vacant and as a result the holding 
costs negatively impact IPIT's cash flow. The net proceeds from the sale of 
this property will be used for the repayment of debt. 
 
Prior to the end of December 2010 a new lease was completed at the Pegasus 
House property in Peterborough. The existing tenant, whose lease was due to 
expire in June 2013, signed a new 15 year lease at the same rent. The tenant 
benefits from an initial 12 month rent free period, and an incentivised break 
option at the end of the 10th year. The value of this asset was substantially 
enhanced as a result of this new lease arrangement, rising by GBP3.06m at 31 
December 2010 as compared to the September 2010 valuation. 
 
In early January a lease re-structuring deal also completed at the Bedford 
property, where the existing lease to Unilever was surrendered with the 
outgoing tenant and sub-tenant paying a combined surrender premium/ 
dilapidations settlement of c. GBP4.58m. Simultaneously a new lease for the 
office building completed with SPD Ltd at an annual rent of GBP753,000 for a term 
of 10 years.  The positive impact of this transaction on the value of this 
asset was not fully reflected in the 31 December 2010 valuation as completion 
had not taken place at that time. 
 
Finally during December 2010, a new lease was completed for the last remaining 
unoccupied office space at IPIT's City of London asset at 11 Old Jewry. A new 5 
year lease was completed with FBR Capital Markets Ltd for c. 3,000 sqft at a 
rent of GBP 35 per sqft per annum. This letting achieves the full occupation of 
the entire c. 49,000 sqft of office space within the building. This is the 
first time this has been achieved since the acquisition of the asset in 2006, 
and is the result on an intensive asset management plan of rolling 
refurbishment and re letting. There remains one vacant area on the ground 
floor, which has planning permission for use as restaurant/bar where detailed 
discussions are well advanced with a prospective occupier 
 
Commenting on these transactions Chairman Richard Barnes said "it is pleasing 
to see further positive activity within the UK portfolio, achieving the full 
occupancy of the office space at Old Jewry and securing substantial lease 
extensions in Peterborough and Bedford. The sale of the vacant property in 
Hounslow is also positive progress, at a price well ahead of the recent 
revaluation." 
 
All enquiries 
 
Invesco Asset Management Ltd 
 
Angus Pottinger 
 
020 7065 3714 
 
Rory Morrison 
 
020 7543 3500 
 
20 January 2011 
 
 
 
END 
 

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