Acquisition and Disposal

RNS Number : 0996K

Invista Foundation Property Tst Ltd

11 July 2011

 



11 July 2011

Invista Foundation Property Trust Limited 

(the 'Company' / 'Group')

INVISTA FOUNDATION PROPERTY TRUST ANNOUNCES ACQUISITION AND DISPOSAL

Invista Foundation Property Trust today announces two transactions.  The Company has exchanged contracts to acquire 88-94 Church Street, Liverpool for £5.55 million reflecting a net initial yield of 11.3% The acquisition is expected to complete on 22 July 2011.  The Company also announces the disposal of a retail asset in York for £5.48 million reflecting a net initial yield of 5%.

88-94 Church Street is a 24,645 sq ft property comprising a prominent retail and office property arranged over basement, ground and seven upper floors at the junction of Hanover Street and the pedestrianised Church Street, Liverpool's prime retail pitch.  The entire property is let to Lloyds TSB Bank plc at £0.664 million per annum, on a full repairing and insuring basis, for a term of 25 years with effect from 25 December 1989, expiring on 24 December 2014.  Lloyds occupies the basement to second floors as a bank and the third to seventh floor offices are sub-let to a legal firm until Lloyds' lease expiry. 

As well as offering an attractive initial yield, the property offers scope for asset management, including the potential for a lease extension.  Furthermore, although the rent paid currently exceeds the market rent, the prominent position and the planning consent for a bank should assist future letting prospects.

The acquisition follows a disposal, on 28 June 2011, of a retail property on Market Street in York for £5.48 million, reflecting a net initial yield of 5%.  The property is let to Superdrug until 2027 at £290,000 per annum, and was sold following the successful extension of the lease by five years.  The price was £1.2 million or 27% above the value immediately prior to the lease extension.

Duncan Owen, Chief Executive of Invista Real Estate Investment Management Limited, said:

"The acquisition of Liverpool at 11.3% follows Keith House in Edinburgh which was purchased at a price reflecting a yield of 14%, illustrating that we continue to identify new investment opportunities with good property fundamentals at attractive pricing and income yields.  These transactions are consistent with our strategy to own a portfolio which display strong fundamentals, whilst disposing of assets where we have successfully implemented asset management plans."

"The Liverpool asset offers the potential for capital value improvement through asset management in due course.  This strategy was successfully implemented at York where the lease extension enabled the Company to achieve a strong price at a low yield."  

-ENDS-

For further information:

Invista Real Estate Investment Management Limited Duncan Owen / Nick Montgomery	020 7153 9300
Northern Trust David Sauvarin	01481 745529
Financial Dynamics Dido Laurimore / Olivia Goodall	020 7831 3113

 

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