Value and Indexed Property Income Trust PLC
(VIP)
£16.5 million Purchase and 30
September 2024 Portfolio Valuation
Value and Indexed Property Income
Trust PLC (VIP) announces the acquisition of the Bridgemere Garden
Centre investment on a 36.5 acre site near Nantwich (Cheshire) for
£16.5 million at a net initial yield of 6.6%, rising to an
estimated 7.8% in December 2025. It is let to Blue Diamond Limited
on a full repairing and insuring lease without break to 2049, with
five yearly rental increases in line with the Retail Price Index
(RPI), capped at 4% p.a. and collared at 1% p.a.
Over the six months to 30 September
2024, VIP has sold four properties - an unindexed, leasehold
industrial at Fareham and two other shorter let properties at Risca
and Thurrock, plus a London pub sold back to the tenant. These sale
prices totalled £9.9 million, 4.3% above their 31 March 2024
valuations, at an overall net yield of 7.7%.
Following this purchase and the
sales, VIP's portfolio's weighted average unexpired lease term
(WAULT) has risen from 11.6 to 13.7 years to the earliest break
options. 100% of the portfolio's rental income now has
index-related and/or fixed increases, and an EPC (Energy
Performance Certificate) rating of A-C. Over the half year to
30 September 2024, rents increased on 8 properties, adding £0.2
million (1.8%) to total rental income.
VIP has no empty properties and no
offices. 28% of the portfolio is in supermarkets, 24%
warehouses/industrials, 14% bowling, 11% garden centre, 8% hotels,
3% pubs and 12% other leisure.
The average interest rate payable on
VIP's debt is 4.5% (95% fixed) with an average maturity of 6.9
years and a 40% Loan to Value ratio.
Portfolio Valuation
Savills' half-yearly independent
valuation of VIP's property portfolio at 30 September 2024 totalled
£146.15 million, at a net initial yield of 6.4%, against £138.1
million (at a net yield of 6.6%) at 31 March 2024. The total
return over the half-year was 4.0%, with like for like capital
growth of 1.1% in addition to rental income. Supermarkets,
industrials, bowling and hotels rose in value, with all other
sectors unchanged. Once the MSCI UK Quarterly Property Index
return for the last quarter is published, full details will be
contained in VIP's half-yearly results, which will be released in
mid-November.
Enquiries:
OLIM Property Limited, Investment
Manager
Tel: 020 7846 3252
Matthew.oakeshott@olimproperty.co.uk
Sarah.martin@olimproperty.co.uk
3 October 2024