Standard LifeInvProp Property Purchases
06 July 2018 - 1:10AM
UK Regulatory
TIDMSLI
To: Company Announcements
Date: 5 July 2018
Company: Standard Life Investments Property Income Trust Limited
LEI: 549300HHFBWZRKC7RW84
Subject: SLIPIT Purchases
Standard Life Investments Property Income Trust (SLIPIT) has completed three
purchases for a total of GBP32.48m. The largest of the three assets is a Tier 3
Data Centre in Birmingham, let to a major operator for a term of 20 years,
subject to a tenant only lease break in year 14. The lease has annual rental
increases in line with RPI, with a collar and cap of 1% and 4%. The property
benefits from a good mixed use location and a large power supply. The purchase
price represents an initial yield of 5.75%. The Company has also acquired a
multi let office and retail unit in the City of London, close to Bank and
Moorgate stations. The purchase price of GBP12.15m represents an initial yield of
7% with a rental guarantee top up, and 4.7% without the top up. The property
has two floors vacant totalling circa 5,000sqft. The purchase price reflects a
capital value of GBP715psf, which is less than vacant possession levels on
several recent transactions. The third asset is an industrial unit close to
Kettering. The property is let to an engineering company that undertakes
specialist aluminium moulding, which has taken a new 20 year lease with five
yearly indexed reviews. The purchase price of GBP8.1m reflects an initial yield
of 7.15%.
Jason Baggaley, fund manager of SLIPIT commented "These three purchases provide
the Company with a mix of secure long term income with indexation and asset
management opportunity. The purchase of the City office reflects an opportunity
to re-enter that market at an attractive price point, especially as 20% of the
income is secured against two small retail units that trade very well and we
look forward to marketing the two vacant floors to increase the yield on the
property.
All enquiries to:
Jason Baggaley
Fund Manager Real Estate
Standard Life Investments
1 George Street, Edinburgh, EH2 2LL
Tel: +44 (0)131 245 2833
jason_baggaley@standardlife.com
The Company Secretary
Northern Trust International Fund Administration Services (Guernsey) Limited
PO Box 255
Trafalgar Court
Les Banques
St Peter Port
Guernsey
GY1 3QL
Tel: 01481 745436
Fax: 01481 745085
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