Acquisition

26 October 2011

Invista Foundation Property Trust Limited 

(the 'Company' / 'Group')

INVISTA FOUNDATION PROPERTY TRUST COMPLETES ACQUISITION OF BT BUILDING IN WEST BROMWICH

The Company has completed contracts to acquire the BT building in West Bromwich for £14.86 million, reflecting a net initial yield of 7.63%. The Company had previously paid a deposit of £0.75 million and at completion made a balancing payment of £14.11 million.

The property comprises a 75,000 sq ft new office development constructed to a high specification capable of flexible future occupation. It is let for fifteen years without break options to British Telecommunications plc, who will become the Company's largest tenant paying a rent of £1.2 million per annum, or 4.72% of the total portfolio rental income. Rent is payable immediately as there is no rent free period. The lease benefits from annual compounded fixed rental uplifts of 3% per annum, thereby increasing the rent every year of the lease term.

Knight Frank has valued the property upon completion at £18.9 million which reflects a net initial yield of 6% and represents a 27% increase relative to the purchase price. It is anticipated that this valuation uplift will increase the Company's NAV, after all acquisition costs, by approximately £3.1 million. In addition, the Company has received rental payments in advance for the period from 25 October to 24 December 2011 of £204,000.

The acquisition enhances the defensive characteristics of the Company's portfolio, increasing the average unexpired lease term to 8.1 years, assuming all tenants exercise break options at the earliest opportunity.

Following the acquisition, the Company's gearing continues to be well controlled, with a net loan to value ratio of 42.3%, after netting total cash of £25.1 million, of which £15 million is outside the security pool charged to the Group's lenders.

-ENDS-

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