UK Commercial Property REIT sells Exeter retail asset for £23.5m
UK Commercial Property REIT has announced the sale of 16-20 High Street in Exeter to a UK pension fund for £23.5m.
FTSE 250
19,601.98
17:09 25/04/24
FTSE 350
4,434.34
17:09 25/04/24
FTSE All-Share
4,387.94
16:49 25/04/24
Real Estate Investment & Services
2,146.24
17:09 25/04/24
UK Commercial Property Reit Limited
64.80p
16:45 25/04/24
The company, which is managed and advised by Aberdeen Standard Investments and owns a diversified portfolio of high quality income-producing UK commercial property, said the price is in line with book value and reflects a net initial yield of 4.75%.
The sale follows the completion of its asset management plan to create a refurbished store for H&M and the conclusion of a rent review with Barclays Bank, the property's only tenants.
Will Fulton, lead manager of UKCM at Aberdeen Standard Investments, said: "This sale has been achieved within a short period of our £24.6m acquisition of M8 Industrial Estate in Glasgow, where we identified an opportunity to invest in a high quality asset at an attractive net initial yield of 5.9%, a significant discount to edge-of city industrial yields in many other major cities and where we see an opportunity to grow the existing income and create value through active asset management.
"This transaction also follows the successful completion of our asset management strategy for Exeter and is line with our strategy to selectively reduce the portfolio's weighting towards retail. It also enables us to reinvest capital into our future investment pipeline."
At 0806 BST, the shares were down 0.4% to 85.80p.