Acquisition of M8 Industrial Estate for £24.6m

RNS Number : 1812B

UK Commercial Property REIT Ltd

19 September 2018

 

UK Commercial Property REIT Limited

UKCP REIT acquires M8 Industrial Estate near Glasgow for £24.6 million

Wednesday, 19 September 2018:  UK Commercial Property REIT Limited ("UKCP REIT" or the "Company") (FTSE 250, LSE: UKCM), which is managed and advised by Aberdeen Standard Investments and owns a diversified portfolio of high quality income-producing UK commercial property, announces the acquisition of M8 Industrial Estate near Glasgow in Scotland from Grayling Capital for a headline price of £24.6 million, based on a topped up net initial yield of 5.9%. The acquisition is being funded through existing cash resources.

M8 Industrial Estate ("M8"), one of Scotland's premier industrial estates, comprises 20 units totalling 290,104 sq ft and offers the potential for two further developments on site. M8 is at 92% occupancy and is well let to tenants including Boots UK, Rentokil and PTS with an attractive WAULT of seven years to expiry and six years to break. There are three smaller void units and with the average passing rent of £5.25 per sq ft there is an opportunity to let up vacant space and grow rents.

M8 is located in Central Scotland, immediately to the east of Glasgow, at the junction of the A8 and A725, providing immediate access to the M8 linking Edinburgh and Glasgow.   The asset is also situated close to access to the M74 linking Scotland to England and the M73, which provides a key route to the North. The estate is well placed for last mile delivery due to its proximity to Glasgow city centre and provides access to over two million people within a one hour drive time and over four million people within a two hour drive time, making it one of Scotland's best located industrial and distribution locations.

Will Fulton, Lead Manager of UKCP REIT at Aberdeen Standard Investments, said: "This transaction is a continuation of our stated strategy to invest capital into prime assets which offer income growth potential and that are accretive to dividend cover.

M8 Industrial Estate is a high quality, multi-let industrial asset, which not only generates stable income, but also offers potential to capture reversion and lease up space. There is also an opportunity for future value creation and income growth through active asset management."

UKCP REIT was advised by JLL on the acquisition of M8 Industrial Estate with MWM acting for Grayling Capital.

ENDS

For further information please contact:

Richard Sunderland / Claire Turvey / Eve Kirmatzis, FTI Consulting                            Tel: [phone]

Email: [e-mail]

Notes to Editors - UK Commercial Property REIT

UK Commercial Property REIT is a FTSE 250 Real Estate Investment Trust listed on the London Stock Exchange. It aims to provide shareholders with an attractive level of income together with the potential for capital and income growth from investing in and managing a £1.416bn (as at 30 June 2018) diversified portfolio of high-quality, income producing UK commercial property which generated rental income of £69.8 million in 2017 (Company Annual Report & Accounts). The portfolio has a strong bias towards prime, institutional quality properties and is diversified by location and sector across the UK.

*Aberdeen Standard Investments is a brand of the investment businesses of Aberdeen Asset Management and Standard Life Investments. The Company is managed and advised by Standard Life Investments (Corporate Funds) Limited (the Company's appointed AIFM). Will Fulton, a qualified Chartered Surveyor with 30 years of experience in the industry, has been Lead Manager since April 2015. Investors should refer to the Key Information Document prior to making an investment decision. Further information on the Company's investment policies, the types of assets in which the Company may invest, the markets in which it invests, borrowing limits as well as details of its management, administration and depositary arrangements can be found in the Company's Annual Report and Investor Disclosure Document. The above documents are available on the Company's website www.UKCPREIT.com. Paper copies of these documents are available on request, free of charge, via the contact details outlined on the website.

Property is a relatively illiquid asset class, the valuation of which is a matter of opinion. There is no recognised market for property and there can be delays in realising the value of property assets. Investors should be aware that past performance is not a guide to future results. The value of investments, and the income from them, can go down as well as up, and an investor may get back less than the amount invested.

For further information on UK Commercial Property REIT, please visit www.UKCPREIT.com.

 

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