Standard Life Investments buys £165m of properties

A portfolio of 22 commercial properties has been bought by Standard Life Investments Property Income Trust (SLIPIT) for £165 million.

SLIPIT fund manager Jason Baggaley said the properties were 'an ideal fit'

The fund said the purchase, from Aviva Investors, will improve its liquidity and boost the size of its gross assets by 50 per cent.

Fund manager Jason Baggaley said: “The portfolio is an ideal fit for the fund and reinforces our strategy to provide income and income growth for investors, as we get closer to the end of capital growth in this cycle.

“The properties are highly complementary to SLIPIT, being well diversified by sector, tenant and location. They also improve our exposure to the Greater London market where there is solid rental growth, predominantly in office and industrial sectors.”

The portfolio includes a P&O warehouse in Dover, industrial sites in Bristol, Manchester and Warwick and retail units in Newcastle, Rochdale and Southend.

Following an equity raise and two property disposals in the final quarter of 2015, SLIPIT used £75m of new equity to buy the properties, along with debt and cash reserves.

Baggaley added: “For SLIPIT in 2016 we will be focusing on bedding in this new portfolio and delivering on the asset management opportunities to increase rental income from the properties.”