SLI.L Regulatory News (SLI)

To: Company Announcements

Date: 23 January 2012

Company: Standard Life Investment Property Income Trust Limited

New debt facility

Standard Life Investments Property Income Trust is pleased to announce it has completed its new debt facility.

The new facility gives the Company certainty over its capital structure, and will enable it to continue to focus on active management of the Company's assets.

In December 2011 the Company signed a new Debt facility with RBS to replace its existing facility of £84.4m which was due to expire in December 2013. The Company has now drawn down in full the new facility and entered into new interest rates hedges to give a cost of debt of 6.38% until December 2013, reducing to 3.76% from Jan 2014 to expiry of the facility in December 2018. The all in cost prior to the new facility was 6%. The Company retained its existing hedge of £72m due to expire in Dec 2013 as it had a liability of £6.1m (4.5p per share) as at 30 December 2011. That hedge will unwind (though not on a straight line basis) by Dec 2013 to a value of £0. For the avoidance of doubt, the new facility will be used to repay the old debt facility, with no change to the Company's level of borrowings.

The new facility has an LTV covenant of 65% for the first 5 years (same as old covenant), and 60% for the final 2 years. The old ICR covenant of 170% has been reduced to 150% of net rental income.

Jason Baggaley, Fund Manager of the Standard Life Investments Property Income Trust said "we are extremely pleased to have secured the new debt facility well in advance of the expiry date as it gives us certainty over the next 7 years, and will enable us to continue with our active approach to managing the portfolio. The terms of the new facility mean that the cost of debt is slightly higher over the next two years until the old hedge matures, but from January 2014 onwards our interest costs will be approximately £1m pa less than they have been to date, giving scope for future dividend growth. Over the next two years we hope to maintain a covered dividend as a result of our successful lease regears and tenant retention, but the actual level of cover will depend on the timing of investment of our £15m cash. I think 2012 is an exciting time to have some money to invest, and am exceptionally pleased to have secured this new facility at a time many lenders are withdrawing from the UK market. In June 2011 we converted our zero preference shares which were due to mature in 2013 into ordinary shares, so we have now have a simplified capital structure with a secure long term debt facility.

All enquiries:

Jason Baggaley, Standard Life Investments (Corporate Funds) Limited

Tel: 0131 245 2833

Gordon Humphries, Standard Life Investments (Corporate Funds) Limited

Tel: 0131 245 2735