Standard LifeInvProp Property Purchases

 
TIDMSLI 
 
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 GBP32.48m.  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 GBP12.15m 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 GBP715psf, 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 GBP8.1m 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: [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] 
 
 
 
END 
 

(END) Dow Jones Newswires

July 05, 2018 11:10 ET (15:10 GMT)