(Alliance News) - UK Commercial Property REIT Ltd on Thursday announced it has sold its Kew Retail Park asset in London to an unnamed "leading" UK housebuilder.
The midcap property investor managed by Aberdeen Standard Investments said it will receive GBP41 million for the asset sale, marginally below its December 31 book value.
UK Commercial Property owns 4.7 acres of the 10 acre retail park, with its stake comprising five units which are fully let on short leases to tenants including Boots UK Ltd, Sports Direct, Gap Inc and TK Maxx.
"This disposal allows us to continue our portfolio repositioning strategy with the sale of a low growth retail asset via a transaction with a leading UK housebuilder. The transaction permits us to take advantage of strong demand for residential development opportunities and generates further capital for us to invest into income accretive properties, particularly modern economy assets with the potential to deliver sustainable and growing income returns over the long term," said Will Fulton, lead manager of UKCM at Aberdeen Standard Investments.
Shares in UK Commercial Property were up 1.7% at 73.30 pence in London on Thursday.
By Zoe Wickens; zoewickens@alliancenews.com
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UK Commercial Property Trust (UKCM)