Acquisition (8369Q)
October 26 2011 - 1:00AM
UK Regulatory
TIDMIFD
RNS Number : 8369Q
Invista Foundation Property Tst Ltd
26 October 2011
26 October 2011
Invista Foundation Property Trust Limited
(the 'Company' / 'Group')
INVISTA FOUNDATION PROPERTY TRUST COMPLETES ACQUISITION OF BT
BUILDING IN WEST BROMWICH
The Company has completed contracts to acquire the BT building
in West Bromwich for GBP14.86 million, reflecting a net initial
yield of 7.63%. The Company had previously paid a deposit of
GBP0.75 million and at completion made a balancing payment of
GBP14.11 million.
The property comprises a 75,000 sq ft new office development
constructed to a high specification capable of flexible future
occupation. It is let for fifteen years without break options to
British Telecommunications plc, who will become the Company's
largest tenant paying a rent of GBP1.2 million per annum, or 4.72%
of the total portfolio rental income. Rent is payable immediately
as there is no rent free period. The lease benefits from annual
compounded fixed rental uplifts of 3% per annum, thereby increasing
the rent every year of the lease term.
Knight Frank has valued the property upon completion at GBP18.9
million which reflects a net initial yield of 6% and represents a
27% increase relative to the purchase price. It is anticipated that
this valuation uplift will increase the Company's NAV, after all
acquisition costs, by approximately GBP3.1 million. In addition,
the Company has received rental payments in advance for the period
from 25 October to 24 December 2011 of GBP204,000.
The acquisition enhances the defensive characteristics of the
Company's portfolio, increasing the average unexpired lease term to
8.1 years, assuming all tenants exercise break options at the
earliest opportunity.
Following the acquisition, the Company's gearing continues to be
well controlled, with a net loan to value ratio of 42.3%, after
netting total cash of GBP25.1 million, of which GBP15 million is
outside the security pool charged to the Group's lenders.
-ENDS-
For further information:
Invista Real Estate Investment Management
Limited
Duncan Owen / Nick Montgomery 020 7153 9300
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Northern Trust
David Sauvarin 01481 745529
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FTI Consulting
Stephanie Highett / Olivia Goodall 020 7831 3113
This information is provided by RNS
The company news service from the London Stock Exchange
END
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