1 Feb 2016 07:00
1 February 2016
Ediston Property Investment Company plc
(the "Company")
Acquisition of Newcastle office for £18.95 million
Ediston Property Investment Company plc (LSE: EPIC) announces that it has acquired Citygate, a modern office building in Newcastle, for £18.95 million (net of acquisition costs) from Hanro Limited.
The purchase reflects a net initial yield of 6.57% and will be funded from a combination of cash resources and an increase of £12.42m in the existing debt facility with Aviva Commercial Finance Limited at an all-in rate of 2.95%. The loan-to-value ratio of the Company's property portfolio following this acquisition will be 29.01%.
Citygate provides 63,524 sq ft of modern office accommodation with 70 car parking spaces. It is let to three tenants EY, UNW and N+D (London) Ltd, guaranteed by Grainger plc, and has a weighted average unexpired lease term (WAULT) in excess of 6 years. Around 89% of the income benefits from upward-only rent reviews in 2017, with the remaining 11% being reviewed in 2018.
As a result of this acquisition, the thirteenth since the Company launched in October 2014, the Company is almost fully invested.
Calum Bruce, Director of Investment at Ediston Properties Limited, the Company's Investment Adviser, said: "It is our aim to enhance the portfolio by purchasing regional office buildings which offer solid income streams as well as reversionary potential in the short term. Citygate fits the brief. It is well placed to capitalise on the rental growth forecast to materialise in the city, owing to the favourable supply-demand balance".
For further information:
Ediston Properties Limited (Investment Adviser) 0131 225 5599
Calum Bruce
Canaccord Genuity Limited 020 7523 8000
Will Barnett
Neil Brierley
Dominic Waters
David Yovichic
Tavistock 020 7920 3150
Jeremy Carey (jeremy.carey@tavistock.co.uk)
James Whitmore (james.whitmore@tavistock.co.uk)
R&H Fund Services Limited (Company Secretary) 0131 524 6140
Martin Cassels
Notes to editors:
Ediston Property Investment Company plc is a UK real estate investment trust (REIT) with a premium listing on the Main Market of the London Stock Exchange. The Company invests in UK commercial real estate assets to achieve its objective of providing its shareholders with an attractive level of income together with the potential for capital and income growth. It invests principally in three commercial property sectors: office, retail (including retail warehouses) and industrial, without regard to a traditional property market relative return benchmark. The Company launched in October 2014 with the acquisition of an initial £76.7m diversified portfolio of UK commercial properties. In July 2015 it raised £35.9 million by way of a placing and offer of ordinary shares as part of a placing programme. As at 30 September 2015, it owned 11 properties with a value of £136.4 million.
Portfolio management services are undertaken by Ediston Properties Limited, which currently manages property assets across the UK for institutional investors.