9th Dec 2019 12:00
(Alliance News) - Standard Life Investments Property Income Trust Ltd on Friday said it purchased an industrial unit in Badentoy North, Aberdeen, for GBP3.6 million.
The property investment company said that the unit has been let to oilfield services provider Schlumberger Ltd for ten years with an offer to break the lease at eight years. The lease also includes terms that sees Schlumberger agree to fixed rent increases in February 2020 and 2025, based on an interest rate of 2.75% per annum.
Jason Baggaley, fund manager of Standard Life said: "We are pleased to have completed the purchase of this industrial unit on an established industrial park in Aberdeen. This purchase recycles capital from the recent sale of an industrial unit at Denby at 5.75%, where strong performance was realised and from which the proceeds have been reinvested in a good quality asset with a better income profile and return prospects."
The purchase reflects an initial yield of 6.9%, rising to 7.9% in February 2020.
Shares in Standard Life were down 0.1% at 89.50 pence on Monday in London.
By Ife Taiwo; [email protected]
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