Trading Update

25 Jun 2007 07:00

Teesland Advantage Property Inc Tst25 June 2007 25 June 2007 Teesland Advantage Property Income Trust Limited ("TAP" or "the Company") Portfolio Trading Update TAP (LSE: TAP), the listed UK commercial property investment company, announcesthe successful acquisition of an individual property for £3.80 million and thesale of industrial and offices properties for £5.64 million. Units 3, 16 & 18 Freebournes Road, Witham, Essex Three refurbished/ modern factory units have been acquired from theadministrators of former owner J L French for £3.8 million, reflecting anattractive income return of 9.90% after purchaser's costs. The units, totalling158,082 sq ft, are situated on two opposing sites within Freebournes IndustrialEstate, one mile from the A12, with direct access to Chelmsford and Colchester. The property is let on a four year lease to Amtek Investments (Witham) Limited,a new company created for the purposes of acquiring J L French (inAdministration). Amtek manufactures a key component for Ford engines from the facility. Ford hasentered into a five year exclusivity agreement with Amtek and has also taken aninvestment in the new company. The acquisition, financed through a new debt facility, is an opportunity ledpurchase and provides the Company with a high income return underpinned bystrong land values and the ability to redevelop part or whole of the site in themedium to long term. Kershaw House, Great West, Hounslow This multi-let 1960's office building was acquired by TAP as part of a portfolioin March 2006 and has been sold to an investment fund for £3.75 million. Theproperty was subject to four occupational leases, although had a high vacancyrate of 76.5% by area. Part of the void area was subject to two rent guaranteeswhich expire in August 2007, at which point the income return would have fallenfrom 5.25% to 2.71%. The sale reflects a 6.1% increase over valuation and a profit of £0.21 millionfor the Company. Unit 8 and Site V1, Kirkton South, Livingston A vacant 25,000 sq ft warehouse together with 2.7 acres of adjacent land havebeen sold for £1.89million. The unit became non-income producing in May 2007 and was marketed together withthe site in order to obtain a premium price, which was achieved. Overall thesale reflects a 7.0% increase over valuation, and a £0.39 million profit to theCompany. The above disposals significantly improve the vacancy rate within TAP'sportfolio with the result of maximising income returns as non-recoverable costsborne by the Company through holding vacant property are reduced. The proceeds of sale will be reinvested in line with the Company's investmentstrategy of providing future income growth and added value opportunities whilstfurther diversifying TAP's portfolio. TAP is advised by Teesland Asset Management Limited, a wholly owned subsidiaryof Teesland iOG. For further information: Mark Carrington, Teesland Plc 020 7659 6666 Rachel Drysdale, Tavistock Communications Ltd 020 7920 3150 Anson 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