TIDMUKCM
RNS Number : 4445J
UK Commercial Property REIT Ltd
22 December 2020
UK Commercial Property REIT Limited
UKCM invests GBP45.7 million in long lease ASDA supermarket and
student accommodation development and announces GBP25.4 million
disposal
22 December 2020: UK Commercial Property REIT Limited ("UKCM" or
the "Company"), which is managed and advised by Aberdeen Standard
Investments* and owns a diversified portfolio of high quality
income-producing UK commercial property, announces that it has
completed the acquisition of an ASDA supermarket in Torquay, Devon,
from Aviva Investors for GBP16.6 million, representing a net
initial yield of 4.70%, rising to 5.24% in July 2021
In a separate transaction, UKCM has also agreed to forward fund
the development of a strategically located purpose built student
accommodation ("PBSA") asset at 41-45 Gilmore Place in central
Edinburgh for GBP29.1 million. The purchase of land is expected to
complete in February 2021, with delivery of the asset due in 2022,
in time for the 2022/23 academic year.
The purchases will be funded through existing cash resources,
with the Company having also disposed of the M8 Interlink
Industrial Estate, Coatbridge, for GBP25.4 million.
The c. 33,000 sq ft supermarket in Torquay is fully let to ASDA
on a long lease with an unexpired term of 15.5 years. The lease is
subject to five yearly RPI linked rent reviews, with the next due
in July 2021. ASDA, which is one of the UK's 'big four'
supermarkets, with a 14.4%(1) share of the UK grocery market has
occupied the store since 2011. The store, which includes 169 car
parking spaces, is in a strong location and is accessed via Regent
Close off the A322 Newton Road. The property benefits from an
expansive catchment area with a total population of 188,000 in the
immediate vicinity, as well as limited nearby competition.
UKCM has also agreed to forward fund a new 230-bed PBSA
development in Edinburgh, which will comprise over 90% en suite
cluster rooms and a small number of studios, with completion
expected for the start of the 2022/23 academic year. The land,
which has the benefit of full planning permission for the PBSA
development, is to be acquired from S1 Developments for GBP6.5
million with an additional capped funding commitment of GBP22.6
million.
The scheme is in a prime location to serve all three of
Edinburgh's universities, in particular the University of
Edinburgh, as well as being in close proximity to George Square and
the student quarters of Marchmont and Brunstfield. The high quality
design of the property also includes large common areas, music
rooms and bike storage. A specialist operator will be appointed to
manage the asset.
In addition, UKCM has completed the sale of the multi-let M8
Interlink Industrial Estate in Coatbridge for GBP25.4 million. The
disposal is in line with UKCM's strategy to generate capital for
reinvestment into opportunities with longer-term fundamentals.
Following these transactions UKCM remains well capitalised with
GBP60 million of cash resources available for investment and access
to a further GBP150 million of undrawn revolving debt.
Will Fulton, Lead Manager of UKCM at Aberdeen Standard
Investments, said : "Through these acquisitions we are enhancing
our income and increasing the portfolio's exposure to the
alternatives sector. At the same time, this disposal is in line
with our ongoing strategy to refine the portfolio and recycle
capital into opportunities which offer longer term income growth
potential.
"The ASDA supermarket provides access to a long leased,
convenience led asset in a strong location with a growing income
stream through index-linked rent reviews in a segment of retail
that has proven its resilience during the COVID-19 pandemic.
"Whilst the current COVID-19 environment has created a
challenging environment for students we anticipate good demand for
the 2022/23 academic year and beyond. This scheme is not only in an
excellent location in one of the world's leading university cities
but will also offer students high quality modern accommodation with
amenities."
(1) Source: Statista as at October 2020, ranking ASDA as 3(rd)
in the UK
ENDS
For further information please contact:
Richard Sunderland / Claire Turvey / Eve Kirmatzis / Andrew
Davis, FTI Consulting
Tel: 020 3727 1000
Email: UKCM@fticonsulting.com
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 GBP1.22 billion (as at 30 September 2020) 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 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 .
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
MSCPPGBGPUPUPPG
(END) Dow Jones Newswires
December 22, 2020 02:00 ET (07:00 GMT)
Uk Commercial Property R... (LSE:UKCM)
Historical Stock Chart
From Apr 2024 to May 2024
Uk Commercial Property R... (LSE:UKCM)
Historical Stock Chart
From May 2023 to May 2024