In November 2009, we acquired a portfolio of seven freehold and leasehold buildings for £44.8 million (the “Lamont portfolio”). These business park, office and industrial assets have an annual rent roll of £4.41 million, representing a net initial yield on acquisition of 9.8%. The portfolio has been valued at £48.4 million at 30 September 2010, representing a net initial yield of 8.62% with an unexpired lease length of approximately 6.25 years.

The buildings comprise 562,000 square feet of lettable space and occupy some 47 acres so there is some scope for development opportunities. The properties offer significant active management and development potential and the first major value creating initiative was completed this year. This was a lease re-gear at Aker Village, Kirkhill Industrial Estate, Aberdeen, whereby the tenant, Aker Solutions SA, agreed to remove a lease break effectively extending the lease length by five years in exchange for a twelve month rent free period spread over two years. This resulted in an increase in the value of that asset of 13.1% from the valuation on acquisition.