The Invista Foundation Property Trust has expanded its portfolio with the acquisition of a £15 million pre-let office development in West Bromwich.
The office block bought by the Channel Islands-based trust will be let to BT on a 15-year lease, at an initial rate of £1.2 million per annum.
The deal is subject to conditions that are expected to be satisfied over the next three months and completion of the development is expected in August 2011.
Duncan Owen, the chief executive of Invista Real Estate Investment Management, said: "This acquisition is consistent with the company’s strategy to acquire well let and high yielding assets. We have been targeting assets away from currently fashionable areas that we regard as being too competitively bid to acquire at fair value and this purchase demonstrates that, by doing this it is consequently possible to secure good quality property investments at high income yields.
"The fixed minimum annual rental uplifts on the lease to BT plc also provide the company with a very attractive income growth profile in line with the company’s strategy of increasing income. Invista is also considering other interesting acquisitions on behalf of the company and we continue to make good progress on key asset management initiatives that should also further enhance rental income."