Standard Life Investments Property Income Trust acquisition

Standard Life Investments, one of the largest property investors in Europe, has announced on behalf of the Standard Life Investments' Property Income Trust (SLIPIT) the completion of its acquisition of a logistics warehouse located at Wingates Industrial Estate, Bolton, for £14.06m.

The 272,055 sq ft property was built in 2006 and is let to Tesco Stores for a further six years at an annual rent of £1.189m (£4.54 psf). The purchase price reflects an initial yield of 8%.

Jason Baggaley, Investment Director - Property, Standard Life Investments and manager of SLIPIT, said: "This property is a modern well specified and well located logistics unit let to a superb tenant. The purchase further enhances the Company's revenue account, and reinvests some of the proceeds from our recent sales at a higher yield. Increasing the revenue account to maintain a covered dividend is a key priority for the Board.

"Investors are seeking an improved income yield and, through improving commercial property returns, are finding that this is an investment vehicle that provides a means of being able to achieve this - whilst at the same time maintaining the liquidity aligned to being listed on the London Stock Exchange."

SLIPIT has outperformed the IPD monthly index over one, three and five years (to end December 2009) on an income and total return basis. The current share price is 60.25p (as at 24/02/10) with an ongoing dividend yield of 6.6% - an attractive return when compared to the FTSE All Share yield.

The Trust aims to provide an attractive level of income along with the prospect of income and capital growth from investing in a diversified UK commercial property portfolio of office, retail (including leisure) and industrial sectors.