Last checked at 21 Jan 2022 07:00
21 JANUARY 2022
VALUE AND INDEXED PROPERTY INCOME TRUST PLC
ACQUISITION OF FIVE INDEX-LINKED PROPERTIES FOR £30.5 MILLION
Value and Indexed Property Income Trust PLC ("VIP" or "the Company"), the long, strong, indexed property income specialists, announces the acquisition in Q4 2021 of five freehold index-linked properties for a total cost of £30.5 million at a 5.6% net initial yield (bringing the current total portfolio average yield to 5.7%). VIP is now almost fully invested after its transition to a predominantly Property Trust.
The five properties purchased were three industrial/warehouse units in Chester, Stoke on Trent and Westbury, a petrol filling station in Melton Mowbray and a supermarket in Newport, Isle of Wight, all with index-linked leases and a WAULT of 10 years and let to MKM Building Supplies, Arla Foods, BP Oil and Marks and Spencer. The contracted rent on VIP's property portfolio (43 properties) is now £7.99 million per year, up by 26.1% from 30 September 2021. 96% of all contracted rents are now index-linked or with fixed increases (65% RPI-linked, 8% CPI-linked and 23% with fixed increases) and the WAULT is 13 years.
These acquisitions have increased the property portfolio's industrial weighting to 34% and supermarkets to 23%, with 14% in pubs, 9% in roadside, 9% other, 6% in hotels and 5% in leisure.
As at 31 December 2021, the Company's total assets were 74.3% in UK Property (59.8% September 2021), 17.9% UK Equities (16.5% September 2021) and 7.8% Cash (23.8% September 2021), of which 3.3% is committed for the completion of the new Premier Inn hotel development in Alnwick in June 2022.
The property portfolio aims to deliver long term above average real returns (benchmark MSCI Quarterly Property Index) from a well spread portfolio mainly of commercial properties.
The Company is now negotiating to raise further long-term fixed rate debt to deploy in similar index-linked property acquisitions.
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Enquiries:
OLIM Property Limited, Investment Manager
Tel: 020 7846 3252
Matthew.oakeshott@olimproperty.co.uk
Louise.cleary@olimproperty.co.uk