28th Sep 2015 09:57
LONDON (Alliance News) - Standard Life Investments Property Income Trust Ltd on Monday said it has entered a non-binding agreement to buy a portfolio of 22 UK commercial properties for around GBP165.0 million.
The company did not provide any details on portfolio, but said it was well-diversified by sector, region and tenant.
The trust said the acquisition is conditional on it raising additional equity and debt capital to cover the cash purchase price. The trust said it intends to secure a new debt facility for up to GBP75 million and will launch a share placing at a premium to its net asset value to raise another GBP100 million to fund the deal. No further details were provided.
"The acquisition of this portfolio of properties identified by our investment manager presents an excellent opportunity to further diversify and grow the company's property portfolio with properties which are complementary to the existing assets and introduce a number of asset management initiatives to enhance portfolio returns," said Dick Barfield, chairman of the trust.
Shares in Standard Life Investments Property Income were down 2.6% to 84.50 pence on Monday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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