Property Acquisition

26 Mar 2007 07:00

Teesland Advantage Property Inc Tst26 March 2007 26 March 2007 Teesland Advantage Property Income Trust Limited ("TAP" or "the Company") Acquisition of 3 Properties Totalling £13.72m TAP, the listed UK commercial property investment company, announces thesuccessful acquisition of three investment properties for £13.72 million. Theacquisitions, acquired separately, reflect an aggregate net initial yield of6.35% and a reversionary yield of 6.63%. The acquisitions are: Pagoda Park, SwindonA three building office campus let to Lucent Technology, Ericsson and BentleyJennison for an average unexpired lease term of 8.6 years totalling 40,172 sqft. The property was acquired for £6.47 million, reflecting an attractive yieldon cost of 6.75%. The acquisition provides the Company with an opportunity toactively re-gear a number of reversionary leases with a view to maximising theproperty income return. Parceline Distribution Depot, Hambridge Lane, NewburyA 50,050 sq ft distribution warehouse acquired for £4.45 million reflecting aninitial yield of 6.46% with a reversion to 7.19%. The unit is let toParceline's parent company, Geopost UK Limited, for a further 3.5 years. Theproperty has good re-letting and future rental growth prospects due to the lackof supply of similar size units in this location for regional and nationaldistributors. . Integration House, Ancells Business Park, FleetA three storey office building totalling11,900 sq. ft., which has been acquiredfrom Gleeson Properties Limited for a base figure of £2.8 million. Gleeson HomesLimited will enter into a new 10 year lease at a market rent of £18.00 psf. Theproperty also benefits from a planning consent for a further 11,000 sq. ft. ofoffices. The acquisitions, financed through a combination of existing debt and saleproceeds, are in line with the Company's investment strategy and furtherdiversify the TAP portfolio while providing future income growth and added valueopportunities. TAP is advised by Teesland Asset Management Limited, a wholly owned subsidiaryof Teesland iOG. For further information: Mark Carrington, Teesland Plc 020 7659 6666Brett Robinson, Teesland Plc 020 7659 6666Jeremy Carey/ Richard Sunderland, Tavistock Communications Ltd 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