Acquisition

RNS Number : 4875U

F&C Commercial Property Trust Ld

22 December 2011

 



To:                   RNS

Date:               22 December 2011

From:              F&C Commercial Property Trust Limited

Purchase of Property

The Board is pleased to announce that the Company has recently completed the acquisition of two properties, located in East Kilbride and Liverpool. The aggregate purchase price of £33.3 million was paid with available cash resources.

At Mavor Avenue, East Kilbride, the Company has acquired a 106,045 sq. ft. modern retail warehouse situated in the established "out of town" retail area. The property is let to B&Q for an unbroken term of 18 years on a full repairing and insuring lease at a current rent of £1,468,724 pa (£13.85 psf). The purchase price of £20.0 million reflects a net initial yield of 6.94%. This property provides a long and secure income stream from a covenant to which the Company previously had no exposure.

In Liverpool, the Company has acquired Unit 1, G Park, a 360,309 sq. ft. distribution warehouse constructed in 2009, located at Junction 5 of the M57 motorway. The warehouse is let to Exel Europe Limited for a term of 10 years which commenced on 7 March 2011, at a rent of £1,441,236 pa (£4.00 psf). The tenant has committed significant capital expenditure to the unit to enhance the base specification and negotiated a rent free period to July 2014. The purchase price of £13.3 million reflects a yield of 10.25% when income producing and equates to a capital value of £36 psf, which is low in comparison to land acquisition and construction costs. This acquisition provides the Company with an extremely well specified building, a secure tenant off a low rent, a "store of value" for the future and an attractive income return upon expiry of the rent free period.

These purchases follow the recent announcement by the Company, on 15 September 2011, to develop student accommodation in Winchester.

All enquiries to:

The Company Secretary                                                               

Northern Trust International Fund Administration Services (Guernsey) Limited       

Trafalgar Court                                                                               

Les Banques                                                                                  

St. Peter Port                                                                                 

Guernsey GY1 3QL                                                                       

Tel: [phone]

Fax: [phone]

Richard Kirby

F&C REIT Property Asset Management plc

Tel: [phone]

Graeme Caton

Winterflood Securities Limited

Tel: [phone]

 

END

 

 

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