Standard Life Investments Property Income Trust has acquired a portfolio of 22 UK commercial properties for £165m from Aviva Investors.
The transaction will increase the trust’s gross assets by 50% and improve its liquidity.
Following an equity raise and two property disposals in the final quarter of 2015, Standard Life used £75m of new equity to buy the portfolio, which includes the Quadrangle in Cheltenham and the P&O Warehouse in Dover, along with debt and cash reserves.
Jason Baggaley, fund manager of Standard Life Investments Property Income Trust, said the portfolio was an ideal fit for the fund.
He said: “The properties are highly complementary to the trust, 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 the office and industrial sectors, and offer scope for active asset management.”
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