SWIP Property Trust (SWIPPT) continues to identify opportunities in the UK commercial property market with its latest purchases of two prime properties in Edinburgh and Sheffield.
The Bridge on the Royal Mile in Edinburgh is situated in a prime location in the heart of the City’s Old Town and includes two retail units, two restaurants, a banking hall and the five star boutique Missoni hotel. The Bridge property was purchased for £41m showing a net yield in the region of 6%.
Gerry Ferguson, head of UK property fund management for SWIP, said:
“SWIP believes that the market has become increasingly competitive as more buyers target a limited supply of properties. Strong relationships with our contacts in the industry have allowed us to continue to purchase properties that meet with our strategy of investing in core, quality property with long secure income.
“The Bridge on the Royal Mile is an exciting opportunity providing a diverse income stream which benefits from an excellent location in a major tourist and business destination in the City of Edinburgh. Despite the challenging economic conditions, SWIP believes Edinburgh has fared well relative to other UK markets, being one of the principle global tourist locations and a worldwide heritage centre. This latest acquisition will deliver long-term benefits to the fund and we’ll continue to look for opportunities in the market with the aim of maximising the total return from the portfolio.”
Citywire rated SWIP fund manager, Gerry Ferguson has been actively investing in a number of prime properties across the UK taking advantage of high liquidity to purchase quality assets for the fund.
Continuing its acquisition trail, the SWIP Property Trust has also purchased The Moor Estate in Sheffield for circa £26.5m. Well-located on the main shopping spine of the city centre within the core area, The Moor Estate comprises 24 acres of predominantly retail property with some office, leisure and car parking.
A key component of the Estate is a cleared development site (known as Block 6) which is the chosen location of the City’s new 200 stall central indoor markets, which will replace the historic Castle Market, and for 83,000 square feet of retail space both of which have detailed planning consent.
Gerry Ferguson, head of UK property fund management at SWIP said:-
“We are pleased to have secured this property, which is viewed as a long-term project for the SWIP Property Trust. It offers the prospect of adding value through redeveloping on a phased basis and therefore fits very well with the fund strategy of acquiring properties with strong income growth potential.”
Since the middle of 2009, the SWIP Property Trust has committed over £600 million to the commercial property market.
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Notes to Editors
The Bridge Property comprises:-
- A five star boutique hotel: Missoni
- Two retail units leased to Gold Brothers and B&GS Landa Limited
- Two restaurants, one leased to Pizza Express and the other to Ondine operated by award winning chef Roy Brett.
- Banking Hall leased to Bank of Scotland
Scottish Widows Investment Partnership
1. SWIP’s ultimate parent is Lloyds Banking Group, one of the largest financial services groups in the UK.
2. SWIP has a geographically diverse client base with alliances, joint ventures and clients in the UK, across Europe, USA, Japan and Saudi Arabia.
3. SWIP is one of the UK and Europe’s largest fund managers with £142bn funds under management (Source: Internal, as at 31 December 2009).
4. SWIP has a broad client base, managing assets for Pension Funds, Charities, Local Authorities, Life Funds, Unit Trusts, OEICs, Off-Shore Funds and Specialist Funds across all asset classes.
5. SWIP has been awarded
- Moneywise Best Specialist Sector Fund in 2008 for the Scottish Widows Latin American fund
- Portfolio Adviser’s Best Government Bond Fund in 2008 for the SWIP Defensive Gilt fund.
- Financial Adviser ‘Five Star’ award recognising SWIP’s strength in the retail investment market in 2008.
- IFA Online has announced SWIP as the winner of the ‘Best Online Investment Provider’ in 2008
- Professional Pensions' Specialist & Alternative Investment Management Awards in the category of UK Fixed Income Manager of the Year
6. SWIP is authorised and regulated by the Financial Services Authority and is entered on their register under number 193707 (www.fsa.gov.uk/register).
7. Investment markets and conditions can change rapidly and as such the views expressed should not be taken as statements of fact nor should reliance be placed on these views when making investment decisions. Past performance is not a guide to the future.
