7th Jan 2020 11:40
(Alliance News) - Standard Life Investments Property Income Trust Ltd said Tuesday it has completed the sale of a single let office building in Staines, England, for GBP10.7 million.
The investment company said the 26,300 square feet building was sold for a net price of GBP10.7 million after deducting the value of the outstanding rent free, reflecting an equivalent yield of 5.7%.
The company said the property had recently been re-let after Standard Life Investments Property Income took a surrender of the previous tenant's lease, and let the whole property for 10 years at a rent of GBP715,000 per annum.
Prior to the asset management there was only two years remaining on the lease and the tenant wanted to downsize, the company said.
Jason Baggaley, fund manager of Standard Life Investments Property Income, said: "We decided to dispose of the asset after completing the successful asset management which maximised the return on the asset."
"We will look to reinvest the sales proceeds into a higher yielding asset that offers better future performance prospects for the company," Baggaley said.
Standard Life Investments Property Income shares were down 0.4% in London at 91.77 pence each on Tuesday.
By Loreta Juodagalvyte; [email protected]
Copyright 2020 Alliance News Limited. All Rights Reserved.
Related Shares:
SLI.L