Monday, 27 July 2015
Standard Life Investments acquires office portfolio and a retail warehouse for €25.2 mln (UK)
The Standard Life Investments Property Income Trust has purchased a portfolio of three offices, plus a retail warehouse in cities across the UK. The two separate deals represent a total investment of over £18 mln (approx. €25.2 mln), bringing the Trust’s overall portfolio to just over £300 mln (approx. €420.5 mln).
The offices – in York, Milton Keynes and Dartford – have a total value of £13.25 mln (approx. €18.6 mln) , reflecting an initial yield of 7.4%. All the offices are fully let to prime tenants with strong covenants.
The retail acquisition is a Halfords retail warehouse, part sublet to Maplin, and a car show room in Bradford. The asset was acquired for £5.1 mln (approx. €7.15 mln) at a yield of 9.5%. It is located next to the dominant retail warehouse park in Bradford.
Jason Baggaley, Fund Manager of the Standard Life Investments Property Income Trust, commented: “These investments demonstrate our confidence in UK regional property markets where we continue to find high quality assets across sectors. The office acquisitions should provide an attractive return on income plus rental growth, while the retail investment offers an attractive running yield with plenty of asset management potential.”
Source: First Light PR