Standard Life investments Property Income Trust intends to raise £16m from investors to fund the acquisition of a modern freehold retail warehouse property, located in Preston, for £16m (excluding costs). At the acquisition price, the warehouse generates a yield of 7% with 16 years remaining on the lease. It is located adjacent to a major foodstore and next to the dominant retail warehouse park in Preston. The tenant is DSG and the lease is subject to fixed increases every 5 years.
They are raising the money by way of a placing to qualified investors. They expect to close this at 2.00 p.m. (London time) on 19th February 2015 but it may close earlier than this. The issue price will be 78.1p, a 5% premium to the 31 December NAV (excluding the dividend payable next week which these shares won’t get).
SLI : Standard Life Property raising cash to fund warehouse deal