Standard Life Investments makes substantial acquisition
Standard Life Investments, one of the largest property investors in Europe, has announced, on behalf of its UK Property Fund, the £13.8m acquisition of Rockingham Street Car Park, Sheffield, UK.
The purchase reduces the cash position in the Fund from 19% to 13%.
Purchased from Cordwell (Portobello) Ltd (part of the Cordwell Property Group), the car park is located to the west of the City centre and is in close proximity to Sheffield University and the office district. It provides 531 parking spaces over six levels with a 9,300 sq ft retail unit at ground level. The property is leased to Q-Park Ltd for 35 years and benefits from five-yearly rent reviews in line with Retail Price Index increases (subject to an annual 2.5% collar and 5% cap). The purchase price represents an average yield of 5.72% in the first 5 years.
Nigel Chapman, Fund Manager of the UK Property Fund, Standard Life Investments, said: "We are delighted that we have been able to complete the purchase of such a high-quality, income producing asset on behalf of the UK Property Fund. The Rockingham Street Car Park provides good diversification in terms of income, reduces the cash balance held in the Fund and provides an attractive yield for investors geared to RPI".
The investment objective of the UK Property Fund is to provide a return from capital appreciation and income over the longer term. The current policy of the Fund is to invest primarily in UK commercial property.
Montagu Evans represented Standard Life Investments in this acquisition and the Cordwell Property Group was represented by Town Centre Parking.