Ediston Property Investment Company has published its first set of figures covering the period from its launch on 28 October 2014 to the 31st of March 2015. Over the period the net asset value rose to 102.6p and the share price rose to 108p. They have paid dividends totalling 1.885p and say they are on track to pay a dividend equivalent to 5.5p per year for their initial accounting period.
They bought five properties for £76.7m during the period and a further property in Bath after the period end. They are in negotiations to spend a further £28.75m on two properties and hope to conclude these deals before the end of June 2015. 25% of the portfolio by rental value was empty but they had rental guarantees in place and managed to let properties in Reading and Birmingham. They also extended the lease on the property in Sheffield from 10 years to 25 years on rents linked to inflation – it was these factors that drove the net asset value higher.
They secured financing in the form of a ten year £40m secured term loan agreement from Aviva Commercial Finance fixed at 3.09% 9provided that the loan to value ratio does not exceed 40%).
The Bath acquisition on 1 May 2015 was of Midland Bridge House at a cost of £4.39m. The property should provide an income stream that rises by a fixed amount in 2017 when the yield will reach 7% on cost. The recently refurbished 18,500 sq. ft. office building comes with 28 car parking spaces, and is close to Bath City Centre. It is let to Withy King LLP, a regional firm of solicitors, until 24 March 2023 at a passing rent of £17.50 per sq. ft. per annum. It is adjacent to the proposed Pinesgate development of 113,000 sq. ft. of new offices which will be the first to be constructed in Bath since 1992. Pinesgate is likely to quote rents of £26.00 per sq. ft. per annum, providing a positive rental growth story for Midland Bridge House, which also has a long term redevelopment angle.
EPIC : Ediston may be fully invested by end June