UKCM captures reversion with three new lettings

RNS Number : 3458V

UK Commercial Property REIT Ltd

05 April 2023

 

UK Commercial Property REIT Limited

UKCM captures significant reversion with three new lettings as occupier demand remains robust

5 April 2023: UK Commercial Property REIT Limited ("UKCM" or the "Company") (FTSE 250, LSE: UKCM) announces that it has secured new leases across three separate assets at a combined weighted premium of 40% to previous passing rent, reflecting continued strong occupier demand for high quality industrial and retail warehouse space.

Webcon, a supplier of car parts, has agreed a five-year lease renewal for the c.10,000 sq ft Unit 1 at Dolphin Industrial Estate in Sunbury-on-Thames, Surrey. The new lease increases annual rental income on the unit by 63% to £155,000, or 4% ahead of ERV as at the December 2022 valuation, and includes a three-month rent-free period.

South West Ambulance Service has signed a new 10-year lease without break for Unit 111 at Emerald Park, Bristol, to be used as an office and a medical supply store. Rental income for the 8,800 sq ft unit has increased to £92,022 p.a. including a nine-month rent-free period, which is 21% ahead of previous passing rent and 2% ahead of ERV. The lease improves occupancy at the park to 100%.

Kentucky Fried Chicken has agreed a 20-year lease renewal on the 2,400 sq ft Unit 4 at Trafford Retail Park in Manchester, with a tenant only break at the end of year 15 and a six-month rent-free period. The new lease will generate an annual rental income of £83,580, which is 17% higher than the previous passing rent and 9% ahead of ERV.

Will Fulton, Fund Manager of UKCM at abrdn, said : "Despite the current economic uncertainty, it is encouraging to see a buoyant occupier market for these assets continuing to drive the impressive leasing momentum we have achieved in recent months and allowing us to progressively capture the substantial reversion potential in our portfolio. These latest lettings were agreed at a significant premium to previous passing rents and reaffirms the strength of our high quality, well-situated assets that are diversified by sector and location. Our expert asset management team will continue to extract value from across our portfolio as we drive rental income on behalf of shareholders."

ENDS

For further information please contact:

Richard Sunderland / Emily Smart / Andrew Davis, 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 £1.31 billion (as at 31 December 2022) diversified portfolio. The portfolio has a strong bias towards prime, institutional quality properties and is diversified by location and sector across the UK.

*The Company is managed and advised by abrdn (the Company's appointed AIFM).

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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