30 January 2012
The SWIP Property Trust (SWIPPT) celebrates completing over £1bn1 in purchases since 2009, as the fund continues to identify assets which will provide long-term growth potential.
SWIP’s strong transactional reputation in the market has enabled it to secure good quality assets, let to strong tenants, in prime locations with income growth potential. Since 2009, SWIPPT has purchased more than £1bn of property and some of its most recent purchases, which are representative of the fund’s strategy, are detailed below:
- A large, flagship retail property, primarily let to Boots, close to Bond Street tube station on Oxford Street, London was purchased for £76 million
- A multi-let parade of shops, with tenants including Next and Superdrug, was purchased at Broad Street in Reading for £26 million
- A newly developed property in Tudor Street in London, offering superior office space in Mid-Town was bought for £39 million in an off-market deal
- A prominent site, in Hammersmith: the first speculative development for the SWIPPT fund will provide 110,000 sq ft of prime office space over 8 floors, with 6,000 sq ft of restaurant/café space at ground level.
Income has been, and will continue to be, the main driver of property returns in 2012, with Central London markets forecast to provide the strongest returns, on the back of a more robust occupier picture and a deeper investment market.
Gerry Ferguson, Fund Manager of the SWIP Property Trust, comments:-
“The recent activity undertaken by the SWIPPT team reaffirms our view that there are still interesting and innovative real estate opportunities out there. In particular, we have been strong believers in the Central London story, largely because of the stronger dynamics across the occupier markets and the prospects for rental growth. As a result, 80% of the properties that we bought last year were located in London and the South East.
“We expect to see capital decline in secondary and tertiary markets but believe that prime property will continue to deliver in the years ahead. As such our strategy for SWIPPT focuses on identifying good quality assets with solid income that offer the ability to grow that income.”
Kerri Hunter, Deputy Fund Manager of the SWIP Property Trust, comments:-
“The fund has purchased a number of properties which are slightly higher up the risk curve and that have the ability to deliver performance when the economy and property markets improve. Importantly, however, these opportunities have strong fundamentals. A good example of this is our off-market purchase last December in Hammersmith.
This is the first speculative development for the fund and we have teamed up with Development Securities, a highly reputable and experienced partner, to provide 110,000 sq ft of prestigious office space, expected to attract good quality tenants on long leases. The development will be delivered to the market early 2013, enabling us to take advantage of the favourable dynamics of the Hammersmith market."
- Ends -
Notes to Editors
1 The transactions for the SWIPPT fund cover calendar years from 2009 to 2011. For information: the first SWIPPT transaction was made in April 2009.
The fund size of the SWIP Property Trust is £2.3bn. (Source: Internal, as at 31 December 2011).
Scottish Widows Investment Partnership
- SWIP’s ultimate parent is Lloyds Banking Group, one of the largest financial services groups in the UK.
- SWIP has a geographically diverse client base with alliances and clients in the UK, across Europe, USA and Japan.
- SWIP is one of the UK and Europe’s largest fund managers with £139.9bn funds under management (Source: Internal, as at 31 December 2011).
- 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 major asset classes.
- SWIP is authorised and regulated by the Financial Services Authority and is entered on their register under number 193707 (www.fsa.gov.uk).
- 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.
