TAP.L Regulatory News (TAP)

4 Jul 2006 16:14

Teesland Advantage Property Inc Tst04 July 2006 4 July 2006 Teesland Advantage Property Income Trust Limited("TAP" or "the Company") Acquisition of c £14.8 million of Office and Industrial Properties TAP, the listed UK commercial property investment company, which is advised by Teesland Asset Management Limited, a wholly owned subsidiary of Teesland iOG, announces it has acquired six investment properties for a total of £14.8 million. The aggregate net initial yield of the properties is 6.6% with a net reversionary yield of over 7%. TAP has acquired three office investments for £7.0 million. The buildings, located in Bradford, Isleworth and Stirling, total some 41,000 sq ft and are let on leases, expiring between 2007 and 2016, to tenants including Scottish Enterprise, NWS Bank and Gleeson Construction Services. The balance is three industrial investments acquired for £7.8 million and located in Clevedon, Manchester and Worcester. Totaling some 141,000 sq ft they are let on leases expiring between 2010 and 2016, to tenants including LIDL, CPM Engineering and Exel Europe. The Worcester property was acquired from Prudential and the balance of properties from MJ Gleeson, the construction services, homes and property company, as part of its programme of asset disposals. Admitted to listing on the London and Channel Islands Stock Exchanges in February 2005, the Company's objective is to provide shareholders with an attractive level of income (the dividend yield is currently in excess of 6%) and potential for income and capital growth from investing in a diversified portfolio in the UK and the Channel Islands. TAP is advised by Teesland Asset Management Limited, a wholly owned subsidiary of Teesland iOG, which, with £2.6 billion funds under management, is one of Europe's leading independent property fund and asset managers. Chris Fish, Chairman of TAP, commented: "These acquisitions fit very well with our stated intentions at the time of the 'C' Share Placing in February this year, when we raised £71 million. Through Teesland iOG's expertise in these sectors, we have been able to access off-market properties which are let to tenants with good covenants and are well positioned to benefit from rental growth, as well as offering active management opportunities. We see the office and industrial sectors as important to your balanced portfolio. Following a four further prospective acquisitions which we hope to conclude shortly, we will have invested all the cash raised in February. However, we have additional borrowing capacity available and are therefore seeking further attractive opportunities to add to the portfolio. TAP has delivered strong NAV growth of 14% to the end of March 2006 since its admission to listing on the London and Channels Islands Stock Exchanges in February 2005 in addition to paying dividends at a rate of 6.5% per annum on the original issue price." For further information: Brett Robinson, Teesland plc: 020 7659 6666Darren Fennell, Teesland plc 020 7659 6666 Jeremy Carey/Richard Sunderland Tavistock Communications Limited 020 7920 3150 Anson Fund Managers Limited, Company Secretary 01481 722260 This information is provided by RNS The company news service from the London Stock Exchange