Member Article

Standard Life in £14.6 million Rotherham logistics deal

Property consultancies Knight Frank and Savills have advised on a £14.6 million logistics deal in Rotherham by Standard Life Investments Property Income Trust.

A logistics and industrial asset in Rotherham from a private property investment company for £14.6 million, reflecting a net initial yield of 7%.

The acquisition comprises three units totalling 360,000 sq ft all let to the Symphony Group on a 20-year lease with a tenant break in year 15 at an initial rent of £1.08 million per year.

Savills advised the Standard Life Investments Property Income Trust, while Knight Frank advised the vendor.

Henrie Westlake, head of investment at Knight Frank in Leeds said: “This is one of the most significant investment deals in Yorkshire this year.

“The region continues to be popular with investors and this sale underlines that well-located assets, with proven occupiers on long-leases, will always prove attractive. London does not have the monopoly on commercial property investment.”

Mark Wilson, associate director of investment at Savills, added: “We are delighted to have secured this asset on behalf of Standard Life, the property is situated in one of the most established industrial locations in the region and offers inflation linked, long-term income to an established occupier at an attractive yield”

Jason Baggaley, fund manager for Standard Life Investments Property Income Trust, commented: “We are delighted to have made this acquisition.

“The Trust is now close to being fully invested. We have found attractive assets that provide good quality income for the Trust, supporting our objective of offering an attractive dividend yield that is fully covered, and without experiencing prolonged cash drag. We are actively looking at a number of other opportunities as well.”

This was posted in Bdaily's Members' News section by Clare Burnett .