LONDON (Alliance News) - F&C Commercial Property Trust Limited said Tuesday it has now completed its forward commitment to purchase four new pre-let headquarter office buildings in Prime Four Business Park, Kingswells, Aberdeen.
F&C said it completed the purchase of the remaining two blocks for a cost of GBP30.4 million on April 17, after agreeing the forward commitment in 2012.
As previously reported, the firm completed the purchase of Blocks 1 and 2 in March 2014 at a cost of GBP65.0 million.
The combined purchase cost of GBP95.4 million was funded by existing cash resources and the Company's GBP30 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.
F&C said 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.
The transaction is described as "significant" by the company, with the properties all income producing, generating rental income of GBP6.9 million per annum, equivalent to a net initial yield of 6.8%.
F&C Commercial Property Trust shares were trading 0.71% lower at 120.045 pence Tuesday morning.
By Alice Attwood; aliceattwood@alliancenews.com; @AliceAtAlliance
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