Standard Life Investments’ Property Income trust has added to its portfolio of assets after exchanging contracts for a £14.1 million logistics warehouse today (Monday 22 February).

It is anticipated that the deal for the unit in Bolton – currently operated by Tesco - will complete on Friday (26 February 2010).

The Supermarket group has the lease on the premises for a further six years at an annual rent of £1.189 million.

The purchase price reflects an initial yield of 8 per cent.

Jason Baggaley, fund manager for Standard Life Investment said that the acquisition represented an exciting opportunity.

He said, ‘This property is a modern well specified and located logistics unit let to a superb tenant. The purchase further enhances the Company's revenue account, and reinvests some of the proceeds from our recent sales at a higher yield.’

The news comes as Standard Life Investments cranks up its purchase activity for its open and closed ended property funds.

Last week, the asset manager confirmed that it had acquired a retail park in Scotland for its UK Property fund to the tune of £18.15 million, acquired from the Hercules Income fund – a joint venture between British Land and Hermes & LaSalle Investment Management.

After that deal, Nigel Chapman, fund manager of the UK Property Fund, remarked that investors were continuing to be attracted to UK property because of the ‘compelling yield’ on offer.