Standard Life Investments Property Income Trust - SLIPIT Purchase

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: [phone]
[e-mail]

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:         [phone]
Fax:        [phone]
 

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