Standard Life Investments Property Income Trust Rebalances Portfolio
31 August 2015
Standard Life Investments Property Income Trust has completed the sale of two assets and purchased two more, as the portfolio is rebalanced.
The Trust has completed the sale of an industrial investment in Leeds for £3.85 million and an office in Glasgow for £5.7 million. These sales were 18.4% ahead of the March 2015 valuation and reduced the risk of voids in the next two years.
The first purchase is a single let office in Kidlington, Oxfordshire for £4.8 million, with just over six years remaining on the lease, providing an annual yield of 8.25%. The second one is a single let industrial unit at Segensworth Business Park on the outskirts of Fareham in Hampshire for £3.1 million, with an annual yield of 7.15% on the expected rent following a recent rent review.
Jason Baggaley, Fund Manager of the Standard Life Investments Property Income Trust, said:
"Over the first half of 2015 we have looked to sell assets that have limited potential to meet our strategic requirements in the medium term, and we’ve now more or less completed this programme. The sale proceeds have been invested into good quality real estate with both attractive yields and value-add opportunities."