19th May 2008 07:00
UK COMMERCIAL PROPERTY TRUST LIMITED
19 MAY 2008
UK Commercial Property Trust Limited Income Improvements.
In two separate transactions, UK Commercial Trust Limited has re-structured leases on approx £6m of income, with two of its largest tenants.
At Hatfield Business Park, the Company has extended the lease by a further 11 years. The lease now expires in 2032.
At 5/7 Chancery Lane, the Company has extended the lease for a further five years with the earliest termination now being March 2018.
Announcing the deals, Robert Boag, Senior Asset Manager for Resolution Asset Management, acting on behalf of the Company commented: "The Company is, primarily, an income driven vehicle but these two transactions provide an opportunity to produce immediate capital performance as well as further enhancement to the quality/longevity of the Company's income stream. As managers we believe that this will be an increasingly important factor in performance over the next 12 to 18 months".
Together, the deals represent approximately 12% of the Company's annual rental income and are typical of the type of asset management initiatives that are being applied across the whole portfolio.
As a consequence of the transactions, the average lease term on the portfolio has moved from 10 yrs 8 months to 11 yrs and 4 months over the period since end March 2008.
Otherwise, voids remain low (currently below 4.00%) and covenant strength remains well into the top quartile (as measured by IPD's Iris service).
The Trust remains ungeared at present with satisfactory levels of cash.
A pdf image of Chancery Lane is attached.
Click on, or paste the following link into your web browser, to view the associated PDF document.
http://www.rns-pdf.londonstockexchange.com/rns/7103U_-2008-5-16.pdf
All enquiries:
The Company Secretary
Northern Trust International Fund Administration Services (Guernsey) Limited
Trafalgar Court
Les Banques
St Peter PortGuernsey
GY1 3QL
Tel: 01481 745529
Fax: 01481 745085
END
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