UKCM sells Portsmouth's Motor Park at 3pc discount
UK Commercial Property REIT has sold Motor Park in Portsmouth - a multi-use asset primarily made up of seven car showrooms - to Glasgow City Council, for £29.8m, it announced on Monday.
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The FTSE 250 firm said the sale price represented a 3% discount to the December valuation, and provided it with additional capital to invest in markets with “strong” underlying fundamentals, including alternatives.
UKCM explained that it had undertaken a programme of active asset management, increasing the weighted unexpired lease length at the asset with new leases to Snows Business Holdings, which operates BMW, Mini and SEAT franchises, and Harwoods, which operates the Audi franchise, signed last year.
It also recently completed its £18.1m sale of Broadbridge Retail Park in Horsham, in line with the September and December valuations, following the exercise of an option by Delancey and Tritax, which had been agreed in November.
“Through our successful asset management activity we were able to increase the average unexpired lease length at Motor Park and enhance its value, which we have crystallised for our investors with this sale,” said Will Fulton, lead manager of UKCM at it manager and adviser, Aberdeen Standard Investments.
“These disposals also give us additional firepower to reinvest into attractive, income accretive assets, for example in the alternatives sector, where we see longer term opportunity to deliver reliable returns.”
At 0932 GMT, shares in UK Commercial Property REIT were down 3.98% at 76.34p.