20th Apr 2023 16:48
(Alliance News) - The abrdn Property Income Trust said on Thursday that it had completed forward funding on one large property, and commenced work on a speculative industrial warehouse, in Merseyside this month.
Abrdn Property Income, or API, said that forward funding at Stadium Way in St Helens achieved practical completion on April 3. A 15-year lease of the building to St Helens Borough Council was completed at an initial rent of GBP657,040 per annum.
The building's "A" property has been under-let to no-for-profit Glass Futures, which will establish a research and development facility focused on making glass manufacture methods more efficient and sustainable. The property is predominantly a standard industrial unit but the borough council, the Liverpool City Region Combined Authority and UK Research and Innovation have provided funding for a bespoke fit-out.
Abrdn Property Income also said it has commenced work on a speculative industrial warehouse in Knowsley, having acquired the site in February. Abrdn Property Income has commenced construction of a 107,000 square foot high-specification unit, which is scheduled for completion before the end of this year.
Abrdn Property Income stated that the project "is anticipated to benefit from favourable market dynamics with low levels of supply and robust tenant demand."
Mark Blyth, abrdn's Property Income deputy fund manager, said: “Investing via development is a way for API to acquire assets where we have influence over the specification right from inception of the property. We can then focus on ensuring that the building meets not only the most appropriate operational specification but also that [environmental, social and governance] considerations are incorporated from the start of construction. This has the double benefit of aligning with API’s focus on sustainability and also enhancing returns.”
Shares in abrdn Property Income were up 1.5% at 56.00 pence on Thursday in London.
By Emma Curzon, Alliance News reporter
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