Property Purchases

To:                     Company Announcements
Date:                  5 July 2018   
Company:           Standard Life Investments Property Income Trust Limited
LEI:                    549300HHFBWZRKC7RW84
 

Subject:               SLIPIT Purchases

Standard Life Investments Property Income Trust (SLIPIT) has completed three purchases for a total of £32.48m.  The largest of the three assets is a Tier 3 Data Centre in Birmingham, let to a major operator for a term of 20 years, subject to a tenant only lease break in year 14. The lease has annual rental increases in line with RPI, with a collar and cap of 1% and 4%. The property benefits from a good mixed use location and a large power supply. The purchase price represents an initial yield of 5.75%. The Company has also acquired a multi let office and retail unit in the City of London, close to Bank and Moorgate stations. The purchase price of £12.15m represents an initial yield of 7% with a rental guarantee top up, and 4.7% without the top up. The property has two floors vacant totalling circa 5,000sqft. The purchase price reflects a capital value of £715psf, which is less than vacant possession levels on several recent transactions. The third asset is an industrial unit close to Kettering. The property is let to an engineering company that undertakes specialist aluminium moulding, which has taken a new 20 year lease with five yearly indexed reviews. The purchase price of £8.1m reflects an initial yield of 7.15%.

Jason Baggaley, fund manager of SLIPIT commented “These three purchases provide the Company with a mix of secure long term income with indexation and asset management opportunity. The purchase of the City office reflects an opportunity to re-enter that market at an attractive price point, especially as 20% of the income is secured against two small retail units that trade very well and we look forward to marketing the two vacant floors to increase the yield on the property.

All enquiries to:

Jason Baggaley
Fund Manager Real Estate
Standard Life Investments
1 George Street, Edinburgh, EH2 2LL
Tel: [phone]
[e-mail]

The Company Secretary
Northern Trust International Fund Administration Services (Guernsey) Limited
PO Box 255
Trafalgar Court
Les Banques
St Peter Port
Guernsey
GY1 3QL

Tel:        [phone]
Fax:        [phone]