(Alliance News) - Value & Indexed Property Income Trust PLC on Friday said it acquired five freehold index-linked properties for a total cost of GBP30.5 million in its fourth quarter.
The London-based investment manager for UK commercial properties said it purchased three warehouse units in Chester, Cheshire and Westbury, Wiltshire, a petrol filling station in Leicestershire, and a supermarket in Newport.
The properties are currently being let to MKM Building Supplies Ltd, Arla Foods amba, BP Oil PLC and Marks and Spencer Group PLC.
All of them are index-linked leases and have a 5.6% net initial yield, it said.
Furthermore, they have a weighted average unexpired lease term of 10 years.
The acquisitions bring the total contracted rent of VIP's property portfolio, which includes 43 assets, to GBP8.0 million per year. This represents a 26% rise compared to its third quarter, the company added.
The properties also increased its property portfolio's industrial weighting to 34%, its supermarket's weighting to 23% and its roadside weighting to 9%.
As at December 31, VIP's total assets were 74% in UK property, 18% in UK equities and in 7.8% cash.
The company noted that it is now almost fully invested after its transition to a primarily property trust.
Shares were up 1.7% at 245.06 pence each on Friday midday in London.
By Abby Amoakuh; abbyamoakuh@alliancenews.com
Copyright 2022 Alliance News Limited. All Rights Reserved.
BP (BP.)
Marks & Spencer (MKS)
Vipera (VIP)