18th Dec 2015 15:13
LONDON (Alliance News) - Standard Life Investments Property Income Trust Ltd on Friday said it has sold St James House in Cheltenham for about GBP14.0 million, a premium to its most recent valuation.
The office building has a current rent of GBP862,000 per annum and an average lease length of just over five years, and was valued at GBP13.3 million at the end of September.
"The sale of this asset comes after we have completed the asset management we planned on purchase in 2012, realising profit, and enabling the funds to be reinvested into the Pearl portfolio which includes another office in Cheltenham with exciting opportunities," Jason Baggaley, fund manager, said.
Separately, Standard Life Investments Property Income said it raised GBP75.7 million in an initial placing and offer for subscription of shares. It confirmed also the previously reported acquisition of 22 UK real estate properties for GBP165.0 million. The equity funding was raised along with a planned new debt facility for up to GBP70.6 million, which together with existing cash will fund the deal.
The shares were sold at 82.0 pence each, with 66.3 million sold under the initial placing and 26.0 million in the offer for subscription.
Shares in the trust were up 0.3% at 83.24 pence on Friday afternoon.
By Samuel Agini; [email protected]; @samuelagini
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