Acquisition

RNS Number : 2977O

F&C Commercial Property Trust Ld

15 September 2011

 



To:                   RNS

Date:               15^th September 2011

From:              F&C Commercial Property Trust Limited

Purchase of Property

The Board is pleased to announce that, on 12 September 2011, the Company contracted to the funding of a student accommodation block in Winchester. The development will comprise 499 bedrooms and, upon completion, will be let to the University of Winchester for a term of 25 years subject to fixed annual RPI increases with a collar and cap of 1.0 per cent and 3.5 per cent. The development period will extend to approximately two years during which notional interest at 6.0 per cent will be charged to the developer on development costs. The commitment will involve approximately £26.5 million of capital expenditure and has been funded off a yield of 6.15 per cent. This is an opportunity for the Company to gain income from exposure to a growing alternative sector, supported by a long lease, some inflation hedging and in a city supported by strong underlying residential values.

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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