Acquisition

RNS Number : 9287W

Invista Foundation Property Tst Ltd

29 November 2010

 

29 November 2010

Invista Foundation Property Trust Limited 

(the 'Company' / 'Group')

ACQUISITION OF KEITH HOUSE, EDINBURGH FOR £8.05 MILLION

Invista Foundation Property Trust announces that it has exchanged contracts to acquire Keith House, a multi-let office building in Edinburgh for £8.05 million, reflecting a net initial yield of 14%.  The acquisition is expected to complete on 3 December 2010.

The 84,750 sq ft property, with associated car parking, is let to four office tenants including the Scottish Ministers, Bank of Scotland, Computacenter and Zurich Assurance producing rental income of £1.191 million per annum.  The weighted average unexpired lease term is approximately five years and 20% of the building by area is vacant, providing the opportunity to increase income further through new lettings.  The average office rent is £17 per sq ft.

Keith House was constructed in 1990 and is located on Edinburgh West Office Park, which forms part of South Gyle, close to Edinburgh airport on the western outskirts of the City.  Local amenities include the Gyle Shopping Centre and the new tram link that is due to open in 2012.  The offices are constructed to a good specification with a very favourable car parking ratio compared with competing buildings in the area.

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

"The acquisition of Keith House in Edinburgh illustrates that we are now able to identify and take advantage of new investment opportunities with good property fundamentals at very attractive pricing and income yields.  This acquisition has a very positive effect on the Company's income and we hope to make further announcements in due course as additional investments and asset management initiatives that are work in progress are concluded."  

-ENDS-

For further information:

Invista Real Estate Investment Management 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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