Business
SLIPIT Purchase
SLIPIT Purchase.
About this update from Abrdn Property Income Trust Limited
[{"type":"text","content":"\n \nTo: Company AnnouncementsDate: 9 November 2018 Company: Standard Life Investments Property Income Trust LimitedLEI: 549300HHFBWZRKC7RW84\n\nSubject: SLIPIT Purchase\n\nStandard Life Investments Property Income Trust (SLIPIT) has completed the purchase of a multi let office on the Hagley Road in Birmingham for £23.75m, reflecting an initial yield of 7.6%. The building provides 140,950sqft of good quality office accommodation 1 mile from Birmingham city centre. The offices are let at rents of £8 - £18 psf with scope for increase on a number of the leases, with 30% of the income from the Government. The average lease length to earliest of break or expiry is 4.3 years. The acquisition was undertaken by way of a corporate acquisition hence saving the Company stamp duty. The office has a successful letting history which will be enhanced further by major infrastructure projects in the area. The purchase was funded through cash held and utilisation of part of the revolving credit facility with RBS. The LTV after the purchase is 24.5%\n\nJason Baggaley, fund manager of SLIPIT, commented: “This will be the largest asset in the Company, and meets our aims of buying good quality properties that appeal to occupiers. There is good scope for rental growth with plenty of asset management potential, and with a new tram stop due outside the building as part of major infrastructure projects the connectivity of the building will further improve.\n\nAll enquiries to:Jason BaggaleyFund Manager Real EstateStandard Life Investments1 George Street, Edinburgh, EH2 2LLTel: +44 (0)131 245 [email protected] Company SecretaryNorthern Trust International Fund Administration Services (Guernsey) LimitedPO Box 255Trafalgar CourtLes BanquesSt Peter PortGuernseyGY1 3QLTel: ...