Disposal

RNS Number : 2285U

Standard Life Invs Property Inc Tst

19 December 2011

 



To:                    Company Announcements

Date:                19 December 2011

Company:         Standard Life Investment Property Income Trust Limited

Standard Life Investments Property Income Trust is pleased to confirm that it has completed the sale of Northern and Shell Tower in the Docklands for a price of £12.2m, reflecting an initial yield of 7.05%

The 53,575sqft office property was bought by the Company in 2009 for £10m, reflecting a yield of 8.6%. The property is let to Northern & Shell Plc for a further 11 years at a rent of £909,000pa. The property has generated a return after costs of transactions of 17%pa to the Company.

The Company intends to re invest the proceeds in the first half of 2012 and is looking at a number of opportunities that will provide an attractive income return that will be accretive to the revenue account.

Jason Baggaley, fund manager of the Standard Life Investments Property Income Trust, said "We bought this asset early in the cycle to benefit from expected growth in Central London values. The property offers a secure income stream secured against a good tenant, however we decided to sell now so that we could realise the profit on the investment, and re invest into a less cyclical market at a higher yield".

Michael Elliott acted for Standard Life Investments and Savills City office acted for the purchaser.

All enquiries:

The Company Secretary

Northern Trust International Fund Administration Services (Guernsey) Limited

Trafalgar Court

Les Banques

St Peter Port

Guernsey

GY1 3QL

Renee McIver

Tel:       [phone]

Fax:      [phone]

 

END

 

 

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