Cooke & Arkwright
News
Standard Life add Axys to Welsh Property Portfolio
02/03/05
Standard Life Investments Property Income Trust (SLIPIT) has acquired the 45,000 sq. ft. Axys building at Nantgarw Business Park, Cardiff from the Welsh Development Agency for £7.4 million showing a net initial yield of 7.16%.
The property is occupied by Companies House on a 15 year lease and realises an annual income of £560,000 per annum.
Cooke and Arkwright acted for Standard Life Investments and the Welsh Development Agency represented themselves in what is one of the biggest single deals concluded this financial year.
The Axys building was originally built by BT in 2000 for its own occupation, but proved to be surplus to requirements. It was subsequently purchased by the WDA in 2003. David Stewart, SLIPIT Fund Portfolio Manager commented: “The Axys building is a high quality building that benefits from a secure income stream and the acquisition fits the objectives of the Property Income Trust.”
Adrian Edwards of the WDA added: “We are pleased to have worked with Standard Life Investments and Cooke & Arkwright to dispose of this investment. This followed the acquisition of two properties, enabling a rationalisation of boundaries. After securing an occupier for the Axys building we released the adjacent land where over 100,000 sq. ft. of office and workshop development has taken place.”