Standard Life Property Income sells Elstree Tower – Standard Life Investments Property Income Trust has exchanged contracts to sell Elstree Tower in Borehamwood for GBP20m. The 80,700sqft office was valued at the end of June at GBP18m and is the second largest asset in the fund, and had the largest rent roll (GBP1,320,000pa) which was secured on a lease subject to a tenant only break in 2020. The sale is due to complete in February 2018.
Jason Baggaley, fund manager of SLIPIT, said “The sale continues our strategy of disposing of assets at a profit where it also reduces risk to the company. Although the asset is let to a strong covenant, there is uncertainty around the break clause in 2020, and the building would require substantial capex on expiry. The delayed completion, which is unconditional, provides the company with additional income, and reduces cash drag while opportunities to reinvest the proceeds are being investigated”
SLI : Standard Life Property Income sells Elstree Tower