7 Sep 2020 14:54
Standard Life Investments Property Income Trust - Investment Transaction and Rent CollectionStandard Life Investments Property Income Trust - Investment Transaction and Rent Collection
PR Newswire
London, September 7
To: Company Announcements
Date: 07 September 2020
Company: Standard Life Investments Property Income Trust Limited
LEI: 549300HHFBWZRKC7RW84
SLIPIT Investment Transaction & Rent Collection
Standard Life Investments Property Income Trust (“SLIPIT or the Company”) has completed the purchase of a B&Q Retail Warehouse in Halesowen for £19.5m, financed by its low cost revolving credit facility.
The purchase reflects an initial yield of 7.5% and is let to B&Q Ltd for a further 11 years to lease expiry.
Oli Lord, Deputy Fund Manager of SLIPIT commented: “We are pleased to have completed the purchase of this retail warehouse unit which will provide secure income given the strong tenant covenant and good unexpired lease term. In addition, the property’s configuration and attractive location in the West Midlands also provides flexibility of use in the longer term.”
Jason Baggaley, Fund Manager, commented: “At a time of great turmoil it is sometimes tempting not to do anything, however this asset fits our strategy exceptionally well, providing secure long income on an asset that not only works for the existing tenant, but also has future potential for urban logistics. We believe the asset is a great addition to the portfolio.”
Rent Collection
The Company has been working closely with its tenants and confirms that the rent collection rate as at 31st August for what can collectively be termed advance billing for the second quarter of the year now stands at 87% and for the third quarter it stands at 75%, which the Company expects to increase to 80% on payment of September monthly rents. This compares to 69% reported for the third quarter on the 3rd August. In addition to these collection figures, there are a number of agreements that have been completed with tenants that include monthly payment arrangements and deferred rent payments not fully reflected in these figures. The Company has also agreed a number of lease extensions in return for rent free periods.
All enquiries to:
Jason Baggaley - Fund Manager Tel: 0131 245 2833E-mail: jason.baggaley@aberdeenstandard.com
Oli Lord - Deputy Fund ManagerTel: 0131 245 6077E-mail: oli.lord@aberdeenstandard.com