Last checked at 20 Jan 2014 09:59
To: RNS
Date: 20 January 2014
From: F&C Commercial Property Trust Limited
Purchase of Property
The Board is pleased to announce that the Company has recently completed the acquisition of one property and conditionally exchanged contracts for the acquisition of another. The aggregate purchase price is £10.75 million and will be paid with available cash resources.
At Oakenshaw Road, Solihull, the Company has acquired a retail warehouse which is situated adjacent to Sears Retail Park, one of the Company's largest investments. The property comprises two high quality purpose built retail warehouses, totalling approximately 13,439 sq ft, let to national retailers Magnet Limited and Multiyork Furniture Limited, with a weighted average unexpired term of 8.4 years. The property provides a total rent passing of £326,784 per annum equating to an average of £24.32 per sq ft with good rental growth prospects. The purchase price of £4.5 million reflects a net initial yield of 6.9%. This acquisition will increase the Company's holding within this affluent and improving retail warehouse location and it should benefit from recent lettings and planned initiatives on Sears Retail Park.
The Company has also exchanged conditional contracts to acquire a property at 1 Barrett Street, London W1, which is a small but integral building on St Christopher's Place Estate and has been owned by the sellers since the late 1930s. St Christopher's Place Estate is the Company's largest asset. The purchase price is £6.25 million and completion is scheduled for April 2014 and is conditional on securing full vacant possession of the property. The property comprises approximately 2,210 sq ft of basement and ground floor retail, first floor offices and two floors of residential property fronting the piazza of St Christopher's Place Estate. The acquisition provides an attractive redevelopment opportunity for the Company.
As previously reported, in 2012 the Company agreed a forward commitment to purchase four pre-let office blocks in Aberdeen for approximately £94 million. It had originally been expected that the development of the office blocks would complete in October 2013. However, it is now expected that the development will complete during the first quarter of 2014. The office blocks will be formally valued at the time of their individual acquisitions and it is expected that any uplifts in value will be recognised in the NAV per share at the subsequent quarter end.
All enquiries to:
The Company Secretary
Northern Trust International Fund Administration Services (Guernsey) Limited
Trafalgar Court
Les Banques
St. Peter Port
Guernsey GY1 3QL
Tel: 01481 745324
Fax: 01481 745051
Richard Kirby
F&C REIT Property Asset Management plc
Tel: 0207 499 2244
Graeme Caton
Winterflood Securities Limited
Tel: 0203 100 0268