Standard Life buys East Kilbride retail park
Published: 17 February, 2010
Standard Life Investments has bought the East Kilbride Retail Park on behalf of Standard Life Investments’ UK Property Fund, for £18.145m reflecting a yield of 6.54 per cent.
The property, on Howard Avenue in East Kilbride, was acquired from the Hercules Income Fund, a joint venture between British Land, Hermes and LaSalle Investment Management. It comprises four units developed in 2005 by DSG, providing a total lettable area of 58,119sq ft. The scheme is let to DSG Retail (t/a Currys and PC World) and Dreams, with a 10,000-sq ft unit currently vacant but subject to a vental guarantee from DSG Retail Ltd until 2025.
Nigel Chapman, manager of Standard Life Investments' UK Property Fund said: “This acquisition will provide an appealing source of income which is an attractive proposition given the current state of the property markets. The fund can now boast an impressive average unexpired lease term in excess of 15 years providing us with a good security of income from some high quality tenants. Furthermore, the Fund’s cash position will be reduced to just over 15 per cent and we are hopeful of securing additional investments in the near term.
“Investors continue to be attracted to UK property by the compelling yield it offers. I believe that our continued focus on well-located, quality assets let on longer leases to lower risk tenants will stand us in good stead.”
