(Alliance News) - UK Commercial Property REIT Ltd on Tuesday announced the acquisition of an Asda Stores Ltd supermarket in Torquay, Devon and the forward funding of a student accommodation in Edinburgh.
The FTSE 250-listed real estate investment trust based in London acquired the Asda store from Aviva Investors, part of London-based insurer Aviva PLC for GBP16.6 million. This represents a net initial yield of 4.7%, which will rise to 5.2% in July 2021. It is let to Asda on a 15 years and six moths lease, it said.
UK Commercial Property REIT also has agreed to forward fund a new 230-bed student accommodation development in Edinburgh for GBP29.1 million. The land purchase is expected to complete in February 2021, with construction due to finish in time for the 2022 to 2023 academic year.
The company sold its M8 Interlink Industrial Estate in Coatbridge for GBP25.4 million, which went towards funding the acquisitions.
"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," said
Will Fulton, lead manager of UK Commercial Property REIT at Aberdeen Standard Investments.
Shares in UK Commercial Property REIT were up 0.3% at 64.90 pence in London on Tuesday.
By Zoe Wickens; zoewickens@alliancenews.com
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Aviva (AV.)
UK Commercial Property Trust (UKCM)