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19 Dec 2011 11:00
To: Company Announcements
Date: 19 December 2011
Company: Standard Life Investment Property Income Trust Limited
Standard Life Investments Property Income Trust is pleased to confirm that it has completed the sale of Northern and Shell Tower in the Docklands for a price of £12.2m, reflecting an initial yield of 7.05%
The 53,575sqft office property was bought by the Company in 2009 for £10m, reflecting a yield of 8.6%. The property is let to Northern & Shell Plc for a further 11 years at a rent of £909,000pa. The property has generated a return after costs of transactions of 17%pa to the Company.
The Company intends to re invest the proceeds in the first half of 2012 and is looking at a number of opportunities that will provide an attractive income return that will be accretive to the revenue account.
Jason Baggaley, fund manager of the Standard Life Investments Property Income Trust, said "We bought this asset early in the cycle to benefit from expected growth in Central London values. The property offers a secure income stream secured against a good tenant, however we decided to sell now so that we could realise the profit on the investment, and re invest into a less cyclical market at a higher yield".
Michael Elliott acted for Standard Life Investments and Savills City office acted for the purchaser.
All enquiries:
The Company Secretary
Northern Trust International Fund Administration Services (Guernsey) Limited
Trafalgar Court
Les Banques
St Peter Port
Guernsey
GY1 3QL
Renee McIver
Tel: 01481 745324
Fax: 01481 745085
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