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 £32.48m. 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 £12.15m 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 £715psf, 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 £8.1m 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