UK Commercial Property Trust expands portfolio
Joe McGrath, 30 March 2010
UK Commercial Property Trust today announced the acquisition of a Yorkshire-based retail park to its portfolio.
The investment trust purchased the Junction 27 retail park in Leeds from Henderson Global Investors’ institutional Retail Warehouse Fund for £56.6 million.
The site was developed in 1999 and boasts a number of well-known high street names as tenants including DSG Retail, Comet Group, Harveys Furniture Store, Furniture Village and TGI Fridays.
The current gross annual rent has been priced at £3.7 million a year and the purchase price reflects a net initial yield of 6.15 per cent.
Robert Boag, manager of the UK Commercial Property Trust, said the purchase represented a significant investment which was funded by the equity raised by the trust earlier in the year.
He explained, ‘The latest acquisition increases the portfolio asset base and the trust’s exposure to retail warehousing that offers medium to long term growth prospects.
‘We see numerous asset management opportunities to improve income and deliver a strong income return in both Shrewsbury and Junction 27’
A £1,000 investment in the UK Commercial Property Trust, one year ago, would have grown to £1,617, according to the latest figures from Trustnet. It is also the best performer over three years of the peers in its AIC sector.
Earlier this year the trust raised gross proceeds of approximately £150 million through a placing and offer for subscription to fund new acquisitions.
As a consequence of the capital raise, the assets under management of the trust have grown to approximately £920 million.
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