Standard Life Investments

Asset Management Case Studies

81 – 85 George Street, Edinburgh

June 2017

81 – 85 George Street, Edinburgh
  1. Prime retail and office block in Edinburgh city centre.
  2. Strategy to re-let two retail units and reposition open-plan offices to Grade A
    quality including upgrades to reception, M&E systems and building fabric –
    completing Q3 2017.
  3. 10 year lease agreed with Joules for their largest UK store.
  4. 20 year lease secured through a pre-let, removing letting risk, from Clydesdale
    Bank for Edinburgh flagship branch and first floor offices. 
  5. New 10 year lease secured to InterGen, an existing tenant, to pre-let a
    refurbished floor at a rent 10% ahead of appraisal assumptions. Delivered in Q1 2017.
  6. Lease surrenders negotiated with existing office occupiers with short unexpired lease terms 
  7. Third floor offices available to lease from late summer 2017.

London Office Sold at 3.3% with Re-investment into Logistics at 5.8% Yield on Cost

13 Great Marlborough Street, Soho, London, W1

February 2017

13 Great Marlborough Street, Soho, London, W1h
  1. Built in 1992 so 24 years old and acquired by UKCPT in 2006
  2. 22,252 sq. ft. on basement, ground & seven upper floors
  3. Short dated income
  4. The interior of the building is in need of modernisation
  5. Approach received from adjoining owner to acquire the investment at a price of
    £30.5m reflecting a net initial yield of 3.3%
  6. Having been approached by the owner of the adjacent building we felt that,
    despite this asset’s good location, it was an appropriate time to crystallise a strong return. The sale also removed short term letting risk from the portfolio and the potential for significant capital expenditure

Unit B Centrum West, Burton upon Trent, DE14

June 2017

Unit B Centrum West, Burton upon Trent, DE14
  1. Forward funding of a 258,370 sq. ft. pre-let industrial distribution development
  2. Development relationship with specialist developer Goodman
  3. Location benefits from good connectivity close to M6, M6(T) toll motorway, and
  4. High quality warehouse with strong sustainability credentials - BREEAM Rating
    “Very Good”
  5. Pre-let to Palletforce Limited for 15 years with RPI linked 5 yearly rent reviews,
    capped and collared between 1% and 3% pa compounded annually
  6. Consideration of £22.2m reflecting a 5.8% yield on capital
  7. Completion of the building and lease achieved in early July 2017
  8. Re-invest in line with strategy to generate a higher income which we believe beneficial in the current political and economic market environment.

St George's Retail Park, Leicester

April 2016

St. George's Retail Park Leicester
  1. New leases agreed and implemented with: Wickes, Iceland, Maplin,
    Mattressman, Pets at Home and Aldi
  2. Income of £1.25m pa generated and maintained
  3. AWULT increased from around 2.5 years to circa 6 years
  4. Façade refurbishment programme underway
  5. Planning consent for 25,000 sq ft Open A1 retail development to front of scheme
    (88% under offer by floor space)
  6. Road/access improvement scheme approved and planned as part of new development.

Eldon House, Eldon Street, City of London

April 2016

Eldon House, Eldon Street, City of London

In line with strategy rents being achieved of £52 plus per square foot per annum above
the £31 per square foot per annum rent passing on acquisition.

Kew Retail Park, Richmond

April 2016

Kew Retail Park, Richmond

Rent review settlements across three units on the park generated £75,000 per annum
of additional rent, ahead of ERV, and added over £1,200,000 of value.

Market Street, Manchester

February 2016

Market Street, Manchester
  1. Lease renewal agreed with Adidas for a further 10 year period.
  2. Income of £550,000 pa maintained and £1,600,000 of value added.

6 Arlington Street, St. James, London

January 2016

Arlington Street, St. James, London

Successfully negotiated a lease surrender of the ground and basement floors at
Arlington Street in London’s St James’s and then re-let the space to a new occupier at
a rent significantly ahead of the former rental income for the unit. Adding value and
retaining income over the long term.

The Charles Darwin Centre, Shrewsbury

September 2015

Charles Darwin Centre, Shrewsbury
  1. In line with strategy UKCPT lets 30,300 sq. ft. to Primark.
  2. New anchor triggers £12 million investment to include fit out of the new store
    and the transformation of the Centre’s public areas with new floors, ceilings
    and lighting.
  3. Nine units amalgamated to create the new anchor store.