Standard Life Investments Property Income buys logistics facility – Standard Life Investments Property Income Trust has completed the purchase of a logistics facility of 216,180 sq ft in Shellingford, Oxfordshire on the established White Horse Business Park, for GBP11.5m, reflecting an initial yield of 6.5%. The unit is let for 25 years without break, and is subject to five yearly upwards only rent reviews fixed at 2.5%pa.
Jason Baggaley, fund manager of Standard Life Investments Property Income Trust, commented “the purchase is part of our recycling of capital from sales of assets that we felt had future risk to the Company performance, into well let assets that will provide an attractive income return to the Company. This facility is ideally suited to the tenant, who has recently invested in upgrading and consolidating its operation on site“.
We believe the tenant is Timbmet, part of the Hadleigh Group. From its website “Timbmet today has one of the UK’s most extensive timber and panel product ranges, complemented by a range of manufacturing services. We are dedicated to sourcing innovative timber products from around the world, driven by the demands of our customers. Timbmet offers UK-wide coverage via our network of depots, supported by our central Shellingford Distribution Centre in Oxfordshire, which covers over 200,000 sq.ft.”
SLI : Standard Life Investments Property Income buys logistics facility