Standard Life Investments sheds £200m of assets

Standard Life Investments has become one of the biggest net sellers of industrial property, placing £200m of assets from across its UK funds on the market.   The properties have been put up for sale through a range of agents and at yields of between 5.75% and 6.75%.   They include: the 500,000 sq ft Ultrabox unit in Purfleet, Essex, which is let to Carpetright and available for around £65m; a warehouse in Harlow, let to Tesco on a 16-year lease, for £26m; and Argos’s 381,500 sq ft unit in Basildon for £38.5m.   “Like many funds that need to crystallise their equity, Standard Life is looking at stock it feels is going to underperform,” said one agent. “It views distribution as the weaker performing sector. It funded a lot of these, which means it will not sell at a loss.”   SLI said its 17 UK funds, all of which hold industrial property, remained open and were able to meet any redemption requests from investors.   The fund manager is also in the process of selling four central London assets for a total of £140m, £30m less than it originally asked.   Properties include: the 40,000 sq ft 10 Old Burlington Street, W1, which was marketed at £54m and is under offer for £48m; and 13 Hanover Square, W1, which is under offer to Wharton Asset Management for £38m, £10m less than the asking price.   In addition, 55 New Oxford Street, W1, is under offer for £7m less than the original £43m asking price, and Wellington House has been sold to the Duchy of Lancaster for £17.65m, down from a £21m asking price.   patrick.clift@rbi.co.uk