Investment

RNS Number : 7435P

Alpha Tiger Property Trust Limited

07 October 2011

 



7 October 2011

ALPHA TIGER PROPERTY TRUST LIMITED ("ALPHA TIGER" OR THE "COMPANY")

ALPHA TIGER ANNOUNCES INVESTMENT IN CAMBRIDGE BUSINESS PARK

Highlights

·      Co-investment in a 103,000 square foot business park in Cambourne, Cambridgeshire, UK, with an 8.5% pa net initial yield. 

·      Alpha Tiger investment of £1.2 million represents 10% of the total equity commitment.

·      Joint venture partnership with a major overseas institutional investor.

·      A fully-let institutional quality asset with potential value-add opportunities and open B1 Business user planning permission.

Investment Details

Alpha Tiger has invested in Phase 1000 of Cambourne Business Park, which consists of three quality Grade A specification modern office buildings constructed in 1999 located in the town of Cambourne, approximately 8 miles west of Cambridge city centre. The property is self contained and has 475 car spaces. Phase 1000 is situated at the front of the business park with good access and visibility and occupies a site of approximately 5.6 ha (6.3 acres).

Phase 1000 is fully let to Convergys, Citrix Systems and Regus.

The asset has been purchased by the joint venture entity for £23.0 million including acquisition costs. Alpha Tiger´s equity contribution is £1.2 million which has been invested into a newly formed joint venture entity, a subsidiary of which holds the property. Bank finance of £10.8 million has been agreed.

"The investment by Alpha Tiger represents an excellent opportunity to invest in a quality office park with a high income yield in an established location, noted for its research and development clusters" said Brad Bauman, Joint Fund Manager.

Alpha Real Capital LLP ("ARC") will be appointed as asset and property manager of the joint venture entity.  In accordance with the Company's investing policy, ARC will rebate to Alpha Tiger the relevant proportion of fees earned by ARC which apply to the Company's investment. Phillip Rose is deemed to be a related party due to his relationship with ARC, and as such he has not participated in the Board's consideration of the investment.

For further information please contact:

Alpha Tiger Property Trust Limited

David Jeffreys, Chairman, Alpha Tiger                              [phone]

Brad Bauman, Joint Fund Manager, Alpha Tiger                [phone]

Panmure Gordon, Nominated Adviser & Broker to the Company

Richard Gray/Andrew Potts/Abhishek Majumdar               [phone]

Further information is available at www.alphatigerpropertytrust.com

 

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