Last checked at 15 Sep 2011 10:11
To: RNS
Date: 15th September 2011
From: F&C Commercial Property Trust Limited
Purchase of Property
The Board is pleased to announce that, on 12 September 2011, the Company contracted to the funding of a student accommodation block in Winchester. The development will comprise 499 bedrooms and, upon completion, will be let to the University of Winchester for a term of 25 years subject to fixed annual RPI increases with a collar and cap of 1.0 per cent and 3.5 per cent. The development period will extend to approximately two years during which notional interest at 6.0 per cent will be charged to the developer on development costs. The commitment will involve approximately £26.5 million of capital expenditure and has been funded off a yield of 6.15 per cent. This is an opportunity for the Company to gain income from exposure to a growing alternative sector, supported by a long lease, some inflation hedging and in a city supported by strong underlying residential values.
All enquiries to:
The Company Secretary
Northern Trust International Fund Administration Services (Guernsey) Limited
Trafalgar Court
Les Banques
St. Peter Port
Guernsey GY1 3QL
Tel: 01481 745324
Fax: 01481 745051
Richard Kirby
F&C REIT Property Asset Management plc
Tel: 0207 499 2244
Graeme Caton
Winterflood Securities Limited
Tel: 0203 100 0268