TAP.L Regulatory News (TAP)

16 Oct 2007 07:00

Teesland Advantage Property Inc Tst16 October 2007 16 October 2007 Teesland Advantage Property Income Trust Limited ("TAP" or "the Company") Acquisition of Two Properties Totalling £14.25m TAP, the listed UK commercial property investment company, announces that it hasrecently exchanged contracts to acquire two investment properties for £14.25million. Brunswick Point, Wade Lane Leeds TAP is acquiring a city centre office building comprising 63,352 sq ft ofaccommodation arranged over seven floors. The vendor, Clydesdale Bank Plc, withits subsidiary, Yorkshire Bank, is leasing back 45% of the accommodation for a15 year period at £14.00 psf. Yorkshire Bank will also occupy the remainingaccommodation on a three month rolling basis for up to one year from completionat the end of October. This purchase for £11.15m reflects a net initial yield of 7.7% and will become atop 10 asset by value. Clydesdale Bank is also committing a substantial sum for refurbishing theoffices they will occupy long term and TAP will refurbish the remainder of theoffices that will come back in the short term as well as working closely withthe bank on upgrading the common parts and amenity areas. Teesland and King Sturge acted on behalf of TAP and DTZ acted for ClydesdaleBank Plc. 51 Caswell Road, Brackmills Industrial Estate, Northampton TAP has exchanged contracts to acquire a purpose built distribution warehouseunit totalling 42,780 sq ft.. The property is let to MCD Group Limited for a further 6.25 years at a rentequating to £4.73 psf. Under the terms of the lease the rent review can begeared to 110.6% of the rental value. Therefore, the purchase price of £3.1mreflects a net initial yield of 6.85% which rises to over 7.25% at the next rentreview in December 2008. Built in the mid 1980's the building benefits from an excellent location onBrackmills Industrial Estate, Northampton's principle mixed use industrial anddistribution park. The unit is also situated adjacent to 53 Caswell Road, asimilar property acquired by TAP in 2005. This acquisition presents anopportunity to consolidate the Company's ownership within the area. No premium was paid by the Company to reflect the benefit of securing theproperty adjacent to an existing ownership. Teesland Asset Management Limited, a wholly owned subsidiary of Teesland iOG,and MBH LLP advised TAP. Chris Carter Keall of Teesland Asset Management Limited commented "Theacquisitions present TAP with opportunities for income and income growth, whilstcontinuing to improve the quality of both properties within the portfolio". For further information: Chris Carter Keall Teesland Plc 020 7659 6666Mark Carrington Teesland Plc 020 7659 6666Brett Robinson, Teesland Plc 020 7659 6666Jeremy Carey/ Rachel Drysdale Tavistock Communications 020 7920 3150Anson Fund Managers Limited Company Secretary 01481 722260 E&OE - in transmission This information is provided by RNS The company news service from the London Stock Exchange