Standard Life Investments Property Income Trust (SLIPIT) has sold the Bourne House office building at Staines in Surrey for £10.7 million, netting the trust a yield equivalent to 5.7%.
The 26,300 sq ft building is leased to a single occupant for 10 years at a rent of £715,000 a year. The previous occupant, Ricoh, surrendered its lease with two years left on its ten-year term after it decided to downsize.
SLIPIT bought the property from Greater Manchester Pension Fund in 2011 for just under £8.4 million, which at the time represented a yield of 9.2% for the fund. Campbell Architects oversaw a refit of the block in 2016.
Jason Baggaley, fund manager at SLIPIT, said: “We decided to dispose of the asset after completing the successful asset management, which maximised the return on the asset. We will look to reinvest the sales proceeds into a higher yielding asset that offers better future performance prospects for the company.”
SLIPIT, part of Aberdeen Standard Investments, was launched in December 2003 and joined the stock market in March 2006. The trust is registered in Guernsey.
