6 Oct 2015 07:00
Drum Income Plus REIT plc
("Drum" or "the Company")
Purchase of Property
Drum, the income focussed real estate fund, is pleased to announce three acquisitions, for a total consideration of £19.7 million.
These are the Company's first acquisitions since it was listed on the Official List of the UK Listing Authority and admitted to trading on the Main Market of the London Stock Exchange on 29 May 2015, raising gross proceeds of £31.9 million.
The Company has acquired Duloch Park, a retail park at Turnstone Road, Dunfermline, for a consideration of £4.5 million. Key tenants include Barrhead Travel, Pizza Hut Delivery, Greggs, Lloyds Pharmacy, Subway, Betfred and Johnson Cleaners. The purchase price reflects a net initial yield of 7.4%.
The Company has acquired Mayflower House, an office complex in Fifth Avenue Business Park, Gateshead, for a consideration of £2.67 million. Key tenants include WorldPay, KCS Datawright and Benfield Motor Group. The purchase price reflects a net initial yield of 9.25%.
Drum has also exchanged contracts to acquire Gosforth Shopping Centre, a retail centre in Newcastle upon Tyne, for a consideration of £12.25 million. Key tenants include Boots, Sainsbury's, WH Smith, Costa Coffee, Virgin Money and Lloyds Bank. The agreed purchase price reflects a net initial yield of 7.5%.
Occupancy across the three acquisitions is 96% and annual gross rent receivable is £1.56 million.
Drum Income Plus REIT Plc is an income focused real estate fund targeting secondary commercial property assets, principally in the office, retail and industrial sectors, where there is an opportunity to increase income and capital returns via entrepreneurial proactive asset management and risk-controlled development.
Commenting on the acquisitions, John Evans, Chairman of Drum Income Plus REIT Plc, said:
"Our team has extensive experience of entrepreneurial and proactive asset management and of creating investments that deliver leading revenue and capital appreciation. We intend to follow an asset management strategy that will drive rental growth and maximise additional income opportunities, offering investors an attractive blend of income return and capital growth.
"We are delighted with these first acquisitions since our listing on the London Stock Exchange, which reflect our stated focus on commercial property assets in strong regional locations that offer identifiable asset management and risk controlled development opportunities. Our pipeline of opportunities is healthy and we look forward to announcing further acquisitions in due course."
ends
For further information please contact:
Drum Income Plus REIT Plc Martin Cassels, Company Secretary
|
0131 524 6140 |
Drum Property Group (Asset Manager) Graeme Bone Bryan Sherriff
| 0131 285 0050 |
Dickson Minto W.S. (Sponsor) Douglas Armstrong
|
020 7649 6823 |
Weber Shandwick (Financial PR) Richard Bright Nick Oborne
|
0131 556 6649 020 7067 0721 |
For more information on the Drum Income Plus REIT, visit: www.drumpropertygroup.com/dripreit