Standard Life Investments Property Income Trust has bought two London investments for a total of £13.45m.
In the first deal, the trust has bought a retail/leisure block in Edgware, north-west London, from Chiltern Investment Properties for £6.7m.
The deal represents a net initial yield of 6.1%.
The block at Century Plaza, Station Road, comprises five shops totalling 13,100 sq ft (1,217 sq m) together with a 19,100 sq ft (1,774 sq m) health and fitness centre.
Two of the shops are let on 15-year leases to Peacocks and Caffé Nero. Peacocks is paying £100,000 pa, while Caffé Nero is paying £35,000 pa.
A 12-month rental guarantee has been secured on the remaining vacant units, one of which is under offer.
The health and fitness centre has been let to LA Leisure (guarantee by LA Fitness) for 35 years with fixed uplifts in years five and 10, with open market reviews every five years thereafter.
LA Fitness is paying £182,000 pa.
Standard Life was represented by Mitchel Phillips & Co and Ian Scott & Co, while Fineman Ross acted for Chiltern Investment Properties.
The group also said it had bought a central London office block for £6.75m, representing a net initial yield of 7.69%.
The investment, at 144a Clerkenwell Road and 9 Backhill, London EC1, was bought from Redab Finchley and comprises 22,202 sq ft (2,062 sq m) of offices in a converted warehouse refurbished in 1999 to include a new triple height entrance reception and raised floors.
The property is multilet to three tenants on leases expiring in June 2009 at rents of between £18.90 and £35 per sq ft.
Current income is £528,009 with an outstanding rent review on the first to third floors. Michael Elliott acted for Standard Life.
The trust said it was on-track to be fully invested by September.
References: EGi News 05/07/04
