Standard Life Inv Property Income : SLI – disposal

Standard Life Inv Property Income has sold its largest investment – a logistics unit in Bolton let to Tesco. The price it got for the property was £16m which equates to a yield of 7.25%. The reason for the sale, says Jason Baggaley, Standard Life inv Property Income’s manager, is that Tesco’s lease on the property expires in September 2016 and he was seeking to control lease expiry risk in the fund. The proceeds are being used to buy an office in the South East of England – this deal is in solicitors hands and will generate a yield of 8.1% once completed.

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