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Standard Life Investments Property Income buys in Birmingham

Standard Life Investments Property Income buys in Birmingham Swadlingcote

Standard Life Investments Property Income buys in Birmingham- Standard Life Investments Property (SLI) has recently purchased  multi let office for £23.75 million with an initial yield of 7.6%. The building is 140,960 sqft and is located on Hagley Road in Birmingham. The building is located 1 mile from Birmingham city centre. With major infrastructure projects in the area the building’s excellent letting history should continue. The offices are let at a rate of £8-£18 psf with a possibility to increase on a number of the leases. a majority of the income (30%) come from the government. The average length for the lease is 4.3 years. The building was undertaken due to a corporate acquisition and purchased was funded through cash held and revolving credit facility with RBS. The loan to value is 24.5%.

Jason Baggaley, fund manager of Standard Life Investments Property Income, commented: “This will be the largest asset in the company, and meets our aims of buying good quality properties that appeal to occupiers. There is good scope for rental growth with plenty of asset management potential, and with a new tram stop due outside the building as part of major infrastructure projects the connectivity of the building will further improve.”

SLI- Standard Life Investments Property Income buys in Birmingham

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