UK Commercial Property REIT buys M8 Industrial Estate for £24.6m
UK Commercial Property REIT announced the acquisition of M8 Industrial Estate near Glasgow from Grayling Capital on Wednesday, for a headline price of £24.6m, based on a topped-up net initial yield of 5.9%.
FTSE 250
19,949.22
10:35 01/05/24
FTSE 350
4,479.16
10:35 01/05/24
FTSE All-Share
4,432.87
10:35 01/05/24
Real Estate Investment & Services
2,209.02
10:34 01/05/24
UK Commercial Property Reit Limited
68.00p
10:20 01/05/24
The FTSE 250 firm said the acquisition was being funded through existing cash resources.
M8 Industrial Estate comprises 20 units totalling 290,104 square feet, and offered the potential for two further developments on site.
UKCPT said it was at 92% occupancy, let to tenants including Boots UK, Rentokil and PTS with a WAULT of seven years to expiry and six years to break.
There were three smaller void units, and with the average passing rent of £5.25 per square foot it said there was 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 was also situated close to access to the M74 linking Scotland to England and the M73, which provided a key route to the North.
UKCPT said the estate was “well placed” for last mile delivery due to its proximity to Glasgow city centre, and provided access to more than two million people within a one hour drive and over more than million people within a two hour drive time.
“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,” said lead manager of UKCPT at manager and adviser Aberdeen Standard Investments, Will Fulton.
“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.”