Acquisition

RNS Number : 4653H

Invista Foundation Property Tst Ltd

22 February 2010

 



22 February 2010

Invista Foundation Property Trust Limited (the 'Company' / 'Group')

ACQUISITION OF A NEW HIGH QUALITY OFFICE

Invista Foundation Property Trust announces that it has entered into a forward commitment to purchase a pre-let office development in West Bromwich near Birmingham, for £14.955 million.  On completion the property will be let to BT plc on a new 15 year lease, without tenant options to break, at an initial rent of £1.2 million per annum. 

The lease will benefit from fixed uplifts of 3% per annum throughout the term of the 15 year lease.  The price reflects a net initial yield of 7.6%, after normal purchaser's costs. The deal is subject to conditions that are expected to be satisfied over the next three months and completion of the development is expected in August 2011.

Duncan Owen, Chief Executive of Invista Real Estate Investment Management said:

"This acquisition is consistent with the Company's strategy to acquire well let and high yielding assets.  We have been targeting assets away from currently fashionable areas that we regard as being too competitively bid to acquire at fair value and this purchase demonstrates that, by doing this it is consequently possible to secure good quality property investments at high income yields.  The fixed minimum annual rental uplifts on the lease to BT plc also provide the Company with a very attractive income growth profile in line with the Company's strategy of increasing income. Invista is also considering other interesting acquisitions on behalf of the Company and we continue to make good progress on key asset management initiatives that should also further enhance rental income." 

-ENDS-

For further information:

Invista Real Estate Investment Management Duncan Owen / Nick Montgomery	020 7153 9300
Northern Trust David Sauvarin	01481 745529
Financial Dynamics Dido Laurimore / Rachel Drysdale	020 7831 3113

 

END

 

 

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