Three deals for Standard Life Investments Property Income – Standard Life Investments Property Income Trust has completed three deals.
It sold an industrial unit in Milton Keynes for GBP9.3m, (slightly less than the value used in the end June NAV). The property was let to an envelope manufacturing company and the manager says that the sale was made to reduce tenant covenant risk.
The company also completed the purchase of a small industrial unit at Trafford Park Manchester for GBP3.5m. This is next to an existing holding, and provides the fund with a greater opportunity for future redevelopment. The unit is let on a lease that runs for another 9 years. The initial yield of 5.65% is expected to grow to 6.9% at the next rent review.
The fund also completed the purchase of a mixed use office in Edinburgh for GBP8.7m. The property is let to Tesco and a pharmacy on the ground floor, and has four floors of offices above, with one vacant suite on the fourth floor. The purchase price reflects an initial yield of 3.2% which is expected to grow to 7.7% on expiry of rent free periods and when the vacant suite (4,500sqft) is let.
Jason Baggaley, the fund manager said “We are pleased to have completed the sale of the industrial unit in Milton Keynes as we believed it was one of the greatest income risks to the company. The sale proceeds have been invested into two buildings which we believe have good opportunities to grow rental income. We will be undertaking a small refurbishment of the vacant office suite in Edinburgh, to ensure it is attractive to occupiers“.
SLI : Three deals for Standard Life Investments Property Income
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