Standard Life Investments Property Income Trust (SLIPIT) has sold a logistics warehouse for £19.1 million.
The Edinburgh-based fund will spend some of the proceeds on a new commercial property for which is has agreed a price of more than £13 million.
The 244,434 sq ft Denby 242 property in Derbyshire was SLIPIT's second largest investment. It is let until 2025 to Techno Cargo and the rental income represented 4.4% of the fund’s income.
The sale price of the building at Denby Hall Business Park reflected a total return of 12.6% a year since purchase in 2014. The name of the buyer was not disclosed.
SLIPIT's largest investment is an office building at 54 Hagley Road in Birmingham, valued at up to £24 million.
Jason Baggaley, fund manager of SLIPIT commented “The sale realises the strong performance from the asset since purchase, and reduces the income concentration risk to the Company.
"We have agreed terms to acquire a new industrial investment for £13.9 million, and are looking at a number of other opportunities to reinvest the sale proceeds in good quality assets with an attractive income profile.”
