Purchase of Property

RNS Number : 7653F

F&C Commercial Property Trust Ld

29 April 2014

 



To:                   RNS

Date:               29 April 2014

From:              F&C Commercial Property Trust Limited

Purchase of Property

As shareholders will be aware, in 2012 the Company agreed a forward commitment to purchase four new pre-let headquarter office buildings in Prime Four Business Park, Kingswells, Aberdeen. As reported in the Company's annual results announcement on 11 April 2014, the Company completed the purchase of Blocks 1 and 2 in March 2014 for a cost of £65.0 million. The Board is now pleased to report that, on 17 April, the Company completed the purchase of the remaining two blocks for a cost of £30.4 million. The combined purchase cost of £95.4 million was funded by existing cash resources and the Company's £30 million committed bank facility with Barclays Bank plc, which was provided in 2012 to assist with the funding of the transaction.

This completes the purchase of the properties which comprise in aggregate approximately 300,000 square feet net internal area of accommodation. Blocks 1 and 2, each comprising approximately 100,000 square feet, have been let to Nexen Petroleum UK Ltd and Apache North Sea Ltd for terms of 15 years. Blocks 3 and 4 comprise an office block and training centre which in aggregate amount to approximately 100,000 square feet and have been let to Transocean Drilling UK Limited for a term of 20 years. All the lease agreements provide for five yearly rent reviews to the higher of open market rental value or 3% per annum compounded.

This is a significant transaction for the Company and provides it with exposure to one of the most buoyant office markets in the UK as well as increasing its level of dividend cover. The properties are all income producing, generating rental income of £6.9 million per annum, equivalent to a net initial yield of 6.8 per cent.

The valuations of Blocks 1 and 2 are reflected in the NAV per share as at 31 March 2014 and the valuations of Blocks 3 and 4 will be recognised in the NAV per share as at 30 June 2014.

All enquiries to:

The Company Secretary

Northern Trust International Fund Administration (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

 

 

MSCEANLNALLLEEF