Purchase of property

Drum Income Plus REIT plc

("Drum" or "the Company")

Purchase of Property

Drum announces the exchange of contracts for the acquisition of Lakeside 5500 in Cheadle, Manchester, for a consideration of £5.475 million.

Lakeside 5500 is a prime multi-let office development with key tenants Micron Europe Limited and Agilent Technologies LDA UK Limited. The purchase price reflects a yield of 7.82%.

The exchange of contracts follows the acquisition of Monteith House in Glasgow (announced 23 November 2015), and of Duloch Park in Dunfermline, Gosforth Shopping Centre in Newcastle-upon-Tyne and Mayflower House in Gateshead (announced 6 October 2015) for a combined total of £26 million.

The Company has now completed acquisitions valued at £30.65 million (excluding costs) 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.

Commenting on the acquisitions, John Evans, Chairman of Drum Income Plus REIT Plc, said: "We are maintaining the significant momentum that has been created since our IPO in May 2015, securing a prime property in the North-west of England. Lakeside is an ideal fit for our stated focus on commercial property assets in strong regional locations that offer an attractive yield as well as identifiable asset management and risk controlled development opportunities.

"Our team has extensive experience of entrepreneurial and proactive asset management and of creating investments that deliver leading revenue and capital appreciation. We are following 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."

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NOTE: REIT Portfolio - 22/12/15

Lakeside 5500, Cheadle Royal Business Park, Manchester

· Purchase price £5.475 million

· Net initial yield: 7.82%

· Key tenants: Agilent Technologies LDA UK Ltd, Micron Europe Ltd

Monteith House, 11 George Square, Glasgow

· Purchase price £5.75 million

· Net initial yield: 7.6%

· Key tenants: VisitScotland, Skills Development Scotland

Duloch Park, Turnstone Road, Dunfermline

· Purchase price: £4.505m

· Net initial yield: 7.4%

· Key tenants: Barrhead Travel, Pizza Hut Delivery, Greggs, Lloyds Pharmacy, Subway, Betfred, Johnson Cleaners.

Mayflower House, Fifth Avenue Business Park, Gateshead

· Purchase price: £2.67m

· Net initial yield: 9.25%

· Key tenants: WorldPay, KCS Datawright, Benfield Motor Group. 

Gosforth Shopping Centre, High Street, Newcastle upon Tyne

· Purchase price: £12.25m

· Net initial yield: 7.5%

· Key tenants: Boots, Sainsbury's, WH Smith, Costa Coffee, Virgin Money, Lloyds Bank

For more information on the Drum Income Plus REIT, visit: www.drumpropertygroup.com/dripreit