Commercial Finance Specialists

Invista has completed its acquisition of the BT building in the West Midlands for £14.86 million – with BT immediately becoming the largest tenants.

A deposit of £750,000 had already been paid by Invista, who agreed the deal 18 months ago in February 2010. In a major property finance transaction, the balancing payment of £14.1 million was made to complete the deal.

Knight Frank has valued the property at close to £19 million, which represents a 27.2% yield already on the acquisition price, and which is set to improve the Property Trust's net asset value by £3 million.

The property, which includes a 75,000 sq. ft new office development, has been re-let for fifteen years without break options to BT. The telecoms giants will now pay rent at an initial rate of £1.2 million per year with a fixed annual compound rise of 3%. Invista has already received advance rental income to December 2011 of £204,000.

The agreement secures the company's portfolio with the average lease term running at least eight years.

Regarding its asset finance, the £128 million company has a net loan to value ratio of 42.3%.

Shares in Invista Foundation Property Group closed at 37p yesterday, 4.5p up from its 12-month low which came exactly one month ago.