To:
Company Announcements
Date:
25 June 2019
Company:
Standard Life Investments Property Income Trust Limited
LEI:
549300HHFBWZRKC7RW84
Subject:
SLIPIT Portfolio activity and new RCF facility
Standard Life Investments Property Income Trust Limited (SLIPIT)
has completed a major leasing transaction and small sale. At Bourne
House in Staines (a 26,300sqft office) the Company took a surrender
of the lease on the whole from the existing tenant, Ricoh, which
had indicated it wanted to downsize, and which had a break in 2021.
Simultaneously the property has been re-let on a new ten year term
to a new tenant. The new lease is at a rent slightly higher than
the previous rent passing, and provides the Company with a further
8 years income certainty. In addition, the Company has completed
the sale of a small office in Milton
Keynes for £6m. The sale realises a profit on the asset
whilst reducing future capex and void risk, as it was expected the
tenant would vacate on lease expiry in 2021.
The Company has also entered into a new arrangement with the
Royal Bank of Scotland International Limited (RBSI) to extend its
Revolving Credit Facility (RCF) by £20m. The Company currently has
£18m undrawn from its existing facility, and has not drawn the new
facility, which has an expiry coterminous with the existing debt
provided by RBSI, in April 2023. The
new facility has a margin of 160bps above Libor. The debt is
available to enable the Company to take advantage of opportunities
that might become available in the near future.
Jason Baggaley, Fund manager of
SLIPIT commented: Both of the portfolio transactions continue our
approach of reducing risk whilst realising a profit. We were
particularly pleased to conclude the transaction on Staines as it
was developed working with the tenant to realise a mutually
beneficial outcome, and demonstrates the strengths of our asset
management team. The additional facility has been taken on to
provide flexibility for opportunities that we believe are going to
become available. It will be utilised to acquire assets that meet
the Company’s strategy of providing an attractive income return
with prospects of income and capital growth.
All enquiries to:
Aberdeen Standard Investments
1 George Street
Edinburgh
EH2 2LL
Jason Baggaley - Fund Manager
Tel: 0131 245 2833
E-mail: jason.baggaley@aberdeenstandard.com
Oli Lord
- Deputy Fund Manager
Tel: 0131 245 6077
E-mail: oli.lord@aberdeenstandard.com
The Company Secretary
Northern Trust International Fund Administration Services
(Guernsey) Limited
PO Box 255, Trafalgar Court
Les Banques, St Peter Port
Guernsey GY1 3QL
Tel: 01481 745436
Fax: 01481 745085