Purchase of properties and new debt facility

RNS Number : 9412I

F&C Commercial Property Trust Ld

31 July 2012

To: RNS

Date: 31 July 2012

From: F&C Commercial Property Trust Limited

Purchase of Properties and New Debt Facility

The Board is pleased to announce that, on 31 July 2012, the Group agreed a forward commitment to purchase four pre-let office blocks in Aberdeen for approximately £94.0 million, which are currently being developed. The four blocks, to be situated in Prime Four Business Park, Kingswells, Aberdeen, are expected to be completed between October and November 2013 and to comprise approximately 300,000 square feet net internal area of pre-let accommodation. The consideration is payable on completion of the development of each block.

Office blocks 1 and 2, each comprising approximately 100,000 square feet, have been pre-let to Nexen Petroleum UK Ltd and Apache North Sea Ltd, for terms of 15 years. Plots 3 and 4 will comprise an office block and training centre which will, in aggregate, amount to approximately 100,000 square feet and have been pre-let to Transocean Drilling UK Limited for a term of 20 years, with a guarantee from Transocean Inc. All the lease agreements provide for five yearly rent reviews to the higher of open market rental value or 3% per annum compounded.

This purchase will provide the Company with exposure to one of the most buoyant office markets in the UK. It will also provide an attractive long term and secure income stream. The overall net initial yield is 6.8%.

Also on 31 July 2012, SCP Estate Holdings Limited, a wholly owned subsidiary of the Company, entered into a new £30 million committed bank facility with Barclays Bank plc, which will mature on 30 June 2015. The facility is secured over blocks 1 and 2 and the St. Christopher's Place Estate, which is already secured in favour of Barclays Bank plc. The interest payable under the facility has been fixed through a forward interest rate swap which will result in an aggregate interest rate, including the margin, of 3.705% per annum from the date of draw down until the maturity of the facility. The facility includes terms which are typical for a facility of this nature, including a loan to value covenant at 60 per cent and an interest cover ratio covenant of 2.75 times. The facility will be drawn down on purchase of the later of blocks 1 and 2.

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: 01481 745324

Fax: 01481 745051

Richard Kirby/Daniel Plummer

F&C REIT Property Asset Management plc

Tel: 0207 499 2244