SWIP Property Trust re-enters commercial property market

Scottish Widows Investment Partnership (SWIP) has recently purchased three new properties for the SWIP Property Trust's portfolio, following its identification of some excellent buying opportunities in the uncertain commercial market.

Having maintained a strong liquidity position throughout the property downturn, Gerry Ferguson, manager of the SWIP Property Trust, has been waiting for the opportune time to re-enter the commercial property market.

All three properties are in prime locations have strong, financially sound occupiers and long leases - the average weighted lease of the three properties is 17.5 years compared to the industry average of 9.8 years. Key to Gerry Ferguson's purchasing strategy has been a focus on prime locations with a long-term secure income stream and the potential for capital growth over the medium to long-term.

Speaking on the recent purchases Gerry Ferguson commented: "SWIP believes that the time is right to re-enter the market and are taking advantage of some excellent opportunities that meet our criteria of prime quality assets in good locations with a strong income stream. We continue to assess the market for potential purchases with a view to acquiring further properties in the near future."

In addition to these new purchases, the SWIP Property Trust has also undertaken several new lettings. Despite the market conditions, new lettings of three industrial properties helped to secure an additional £500,000 p.a. of extra income for the Trust with lease terms of 10 years in place for two of the properties and 15 years for the third.

The SWIP Property Trust is currently delivering an income of 4.1% and continues to outperform its peer group, achieving top quartile returns in the IMA Property Sector over six month, two and three years, ranking 2nd quartile over one year. The Trust was also recently recognised at the Money Observer Fund Awards with a ‘Highly Commended' in the Best Property Fund Awards 2009.