Invista Foundation Property Trust has confirmed it has bolstered its portfolio with the acquisition of an office development in the West Midlands.

The Guernsey domiciled closed ended fund has purchased a pre-let office development in West Bromwich, which will be let to BT plc for £14.96 million.

On completion, the property will be let to BT on a new 15 year lease, without tenant options to break at an initial rent of £1.2 million per annum.

Fixed uplifts of rent of 3 per cent per annum have been agreed for the term of the 15-year lease and the price reflects a net initial yield of 7.6 per cent after normal purchaser’s costs.

The investment trust – which sits in the AIC Property Direct (UK) sector – has had a mixed performance over the past five years. £100 invested five years ago would have lost £41.74. However, £100 invested 12 months ago would have more than doubled to £272.67.

Duncan Owen, chief executive of Invista Real Estate Invesmtent Management, said that the acquistion is consistent with the fund’s strategy to acquire well let and high yielding assets.

He explained, ‘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 h a very attractive income growth profile in line with the strategy of increasing income.

‘Invista is also considering other interesting acquisitions and we continue to make good progress on key asset management initiatives that should also further enhance rental income.'

Completion of the development is anticipated to be at the end of August 2011.