(Alliance News) - UK Commercial Property REIT Ltd on Wednesday further strengthened its industrial and logistics portfolio with the acquisition of Sussex Junction.
Sussex Junction is a pre-let, multi-let industrial warehouse development near Gatwick Airport which consists of three warehouse units.
The London-based commercial property investor forward funded approximately GBP25 million for the development.
The asset is expected to show a development yield of 5.8% per annum.
It is expected to be completed in early summer 2022.
After completion, it will deliver around 107,000 square feet of new multi-let space across three units.
Two of the units covering around 56% of the site are already pre-let on a 15-year lease to CGG Services, a Paris-based geophysical services company.
UK Commerical Property's existing industrial and logistics portfolio represents 63% of its total portfolio and delivered a total return of 28% for the 12 months to September 30.
The company said the new development complements its recently acquired income-accretive long term industrial development site in West London and its retail warehouse park in Manchester that totalled almost GBP70 million.
Shares were up 0.8% at 76.80 pence each on Wednesday morning in London.
By Abby Amoakuh; abbyamoakuh@alliancenews.com
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UK Commercial Property Trust (UKCM)