7 Jul 2009 09:42
7 July 2009
THE ADVANTAGE PROPERTY INCOME TRUST LIMITED
("TAP" or "The Company")
TAP successfully disposes of 6 assets
TAP, the listed high income UK commercial property investment company, announces the disposal of six of its investment properties for a total of £10.7 million which will be used to repay debt across its two banking facilities. The disposals were undertaken as part of the normal course of business at an average of 8.5% below the 31 March 2009 valuation and reflect an aggregate net initial yield of 9.0%.
The disposals comprised two industrial properties, three retail warehouses and one retail complex:
The Orbit Centre, Ashworth Road, Bridgemead, Swindon
A long leasehold estate of twenty small warehouses and trade counter units, on approximately 2.04 acres, let to a combination of national and local covenants including City Sprint, HSBC Bank, The Swindon Bed Centre, and the Battery Shop. Over 75% of the leases expire over the next three years. Sold to a local investor for a sum of £1.7 million reflecting a yield of 10.8%.
Granville Street, Dover and Bradfield Road, Huddersfield
Two detached 15,000 sq ft retail units let to Halfords on a leases expiring in 2021, and subject to 5 yearly rent reviews with the next review due in 2011; both sold to a group of private investors for a total of £4.8 million reflecting an initial yield of 8.9%.
Weedon Road, Northampton
A detached 13,000 sq ft retail unit let to Halfords on a lease expiring in June 2016. Sold to a private investor for the sum of £2 million, reflecting a yield of 9.0%.
Market House, Market Square, Aylesbury
A parade of three retail units at ground floor with two floors of ancillary/office accommodation above, The units are let to National Grid Holdings, Dolland & Aitchinson, and Tui UK Limited with leases that expire between 2013 and 2015. Sold to Private Investors for the sum of £1.9 million, reflecting a yield of 9.5%.
Mackintosh Road, Kirkton Campus, Livingston
A vacant industrial unit of 6,237 sq.ft. occupying a site area of approximately 1.28 acres. Sold to an adjoining occupier for £0.3 million.
Through these sales the TAP portfolio has been re-balanced with less exposure to the Halfords covenant within our retail warehousing holdings, reduced exposure to high street retail, and the disposal of a small element of our void industrial. We continue to be focused on the income within the portfolio and will keep shareholders informed of future material lettings within the property portfolio.
Commenting on the transactions, Chris Carter Keall, Fund Manager for TAP at Valad Asset Management Limited - the Property Fund Adviser, said: "These disposals were set out in the Business Plan at the end of Q1 2009. We are pleased that the levels achieved were in line with expectations and this shows a continuing demand for smaller assets within the private investor market.
The receipts from these disposals, will be applied to repayment of loans, and will ensure that there is no risk that TAP will be in breach of any of its covenants and will put the Company in a stronger financial position going forward."
Note to Editors:
The Advantage Property Income Trust Ltd ('TAP') is a quoted commercial property company which focuses on providing high levels of income and income growth through investing in a diverse range of commercial properties across the UK and the Channel Islands. It was launched in February 2005 and listed on both The Channel Islands and London Stock Exchanges. The Company is domiciled in Guernsey and is structured in a tax efficient way.
TAP's £180 million (as at 31st March 2009) portfolio comprises a well-diversified range of assets including retail, retail warehouse, offices, and industrial and leisure properties. Its assets are geographically spread across the UK and the Channel Islands allbeit with a large concentration in the South East of England.
The Company is run by an independent board of non-executive directors who have significant experience in property, the quoted sector and offshore investment vehicles. Valad has been appointed as the Property Fund Adviser. It advises TAP on investment decisions, provides portfolio accounting and active asset management to the Company through a team of finance and property professionals.
Dealing Disclosure Requirements
Under the provisions of Rule 8.3 of the Takeover Code (the "Code"), if any person is, or becomes, "interested" (directly or indirectly) in 1% or more of any class of "relevant securities" of TAP or Conygar, all "dealings" in any "relevant securities" of that company (including by means of an option in respect of, or a derivative referenced to, any such "relevant securities") must be publicly disclosed by no later than 3.30 pm (London time) on the London business day following the date of the relevant transaction. This requirement will continue until the date on which the offer becomes, or is declared, unconditional as to acceptances, lapses or is otherwise withdrawn or on which the "offer period" otherwise ends. If two or more persons act together pursuant to an agreement or understanding, whether formal or informal, to acquire an "interest" in "relevant securities" of TAP or Conygar, they will be deemed to be a single person for the purpose of Rule 8.3.
Under the provisions of Rule 8.1 of the Code, all "dealings" in "relevant securities" of TAP or Conygar by the offeror or the offeree company, or by any of their respective "associates", must be disclosed by no later than 12.00 noon (London time) on the London business day following the date of the relevant transaction.
A disclosure table, giving details of the companies in whose "relevant securities" "dealings" should be disclosed, and the number of such securities in issue, can be found on the Takeover Panel's website at www.thetakeoverpanel.org.uk.
"Interests in securities" arise, in summary, when a person has long economic exposure, whether conditional or absolute, to changes in the price of securities. In particular, a person will be treated as having an "interest" by virtue of the ownership or control of securities, or by virtue of any option in respect of, or derivative referenced to, securities.
Terms in quotation marks are defined in the Code, which can also be found on the Panel's website. If you are in any doubt as to whether or not you are required to disclose a "dealing" under Rule 8, you should consult the Panel.