Standard Life Investments Property Income Trust - SLIPIT Purchase
09 November 2018 - 6:00PM
PR Newswire (US)
To:
Company Announcements
Date:
9 November 2018
Company:
Standard Life Investments Property Income Trust Limited
LEI:
549300HHFBWZRKC7RW84
Subject:
SLIPIT Purchase
Standard Life Investments Property Income Trust (SLIPIT) has
completed the purchase of a multi let office on the Hagley Road in
Birmingham for £23.75m, reflecting
an initial yield of 7.6%. The building provides 140,950sqft
of good quality office accommodation 1 mile from Birmingham city centre. The offices are let at
rents of £8 - £18 psf with scope for increase on a number of the
leases, with 30% of the income from the Government. The
average lease length to earliest of break or expiry is 4.3 years.
The acquisition was undertaken by way of a corporate
acquisition hence saving the Company stamp duty. The office has a
successful letting history which will be enhanced further by major
infrastructure projects in the area. The purchase was funded
through cash held and utilisation of part of the revolving credit
facility with RBS. The LTV after the purchase is 24.5%
Jason Baggaley, fund manager of
SLIPIT, commented: “This will be the largest asset in the Company,
and meets our aims of buying good quality properties that appeal to
occupiers. There is good scope for rental growth with plenty
of asset management potential, and with a new tram stop due outside
the building as part of major infrastructure projects the
connectivity of the building will further improve.
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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