Sale of properties
TR Property Investment Trust PLC
19 November 2003
HENDERSON GLOBAL INVESTORS
TR PROPERTY INVESTMENT TRUST PLC
19 November 2003
TR PROPERTY INVESTMENT TRUST PLC
TR Property Investment Trust sells properties in Southampton and Docklands
TR Property Investment Trust plc ('TRPIT') has sold properties located at Ocean
Village, Southampton and Tavern Quay, London SE16, for a total of £7.565m.
The long leasehold interest in The Quay, a 23,000 sq ft office property situated
in Southampton's regenerated dock area, was sold for £5.165m, to show an initial
yield of 6.35%. The property was originally let to PricewaterhouseCoopers
('PwC'), subject to a lease break option in October 2003. Prior to the break
option date, TRPIT completed a surrender of PwC's lease and granted a 10 year
lease of 3 of the 4 floors at an enhanced rent (£14.25 per sq ft). The new lease
contains upward only rent reviews due in October 2003 and 2008. As part of the
deal, TRPIT took back the ground floor following extensive refurbishment at
PwC's expense. This floor was let to the Secretary of State at a stepped rent
averaging £17.11 per sq ft. Following completion, the building was sold at
£1.165m above the March 2003 valuation to private clients of Morgan Pepper.
The freehold of Tavern Quay Commercial Centre, a multi-let business centre close
to Surrey Quay in London's Docklands, was sold for £2.4 million to a local
business centre operator, to show an initial yield of 7%. The Trust converted
the double height marine workshops on the ground floor into 7 new office suites,
creating an additional 3,000 sq ft of space. This transaction followed the sale
of the freehold of an 868-sq metre (a fifth of an acre) area of the car park to
a specialist residential developer for £1.5m, with full planning permission for
the construction of 12 flats, which was announced in February 2003.
Marcus Phayre-Mudge, deputy fund manager of TRPIT, commented: 'We are very
pleased with these sales, both of which were at prices above valuation. The
current economic climate is attractive for us to switch some capital from direct
property into equities. The sale of Southampton and Tavern Quay demonstrates our
ability to add value for our shareholders by active management.'
- ENDS -
For further information please contact:
C M Turner
Fund Manager
TR Property Investment Trust plc
Telephone: 020 7818 4348
Stephen Westwood
Head of Investment Trusts
Henderson Global Investors
Telephone: 020 7818 5517
Stephen Phillips
Associate Director
Henderson Global Investors
Telephone: 020 7818 6417
Vicki Staveacre
Press Office
Henderson Global Investors
Telephone: 020 7818 4222
This information is provided by RNS
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