25th Sep 2014 08:55
LONDON (Alliance News) - Standard Life Investments Property Income Trust Ltd Thursday said it has exchanged contracts on the sale of two office buildings in Chelmsford for GBP3.5 million.
The two adjacent offices are over-rented, with lease expirations due in December 2015. Completion of the deal is not expected until the end of the leases.
"This transaction is slightly unusual due to the long delay between exchange and completion, but that means we have de-risked a lease expiry on a building where cap ex would have been required whilst maintaining an attractive income stream through to the lease end. The sale price is at our current valuation, but we will receive a further GBP600,000 of income before completion," said Jason Baggaley, the fund manager for the trust.
Standard Life Investments Property Income Trust shares were trading 0.2% lower at 78.58 pence per share Thursday morning.
By Sam Unsted; [email protected]; @SamUAtAlliance
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