ISIS Trust snaps up Homebase branch

ISIS Property Trust, the oldest of the three property investment trusts managed by F&C, has exchanged contracts on a new property for its investment portfolio.

The £109m trust, managed by Ian McBryde at F&C REIT Asset Management, has paid £8m for the retail warehouse, by the A6 just north of Luton. The property is currently let to Homebase, with 10.75 years left on the lease term, at a rent of £570,000 a year. This is subject to five-yearly upward-only rent reviews, the next of which is due in December 2010. The £8m price tag equates to an initial yield to ISIS Property Trust of 6.75%.