UK Commercial Property REIT (UKCM) has bought a £16.6m (€18m) supermarket, agreed to a £29.1m student accommodation forward funding deal and a completed a £25.4m industrial asset disposal. 

The listed UK commercial property firm, managed and advised by Aberdeen Standard Investments, said it has bought the 33,000sqft ASDA supermarket in Torquay, Devon from Aviva Investors.

UKCM is also funding the development of a 230-bed purpose-built student accommodation asset at 41-45 Gilmore Place in central Edinburgh. The purchase of land is expected to complete in February 2021, with delivery of the asset due in 2022, the company said.

The company said it has also sold the M8 Interlink Industrial Estate in Coatbridge for £25.4m, adding that the disposal is in line with UKCM’s strategy to generate capital for reinvestment into opportunities with longer-term fundamentals, the company said.

Will Fulton, lead manager of UKCM at Aberdeen Standard Investments, said: “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.”

Fulton said the ASDA supermarket provides access to a long leased, convenience led asset in a strong location with a growing income stream through index-linked rent reviews in a segment of retail that has proven its resilience during the COVID-19 pandemic.

“Whilst the current COVID-19 environment has created a challenging environment for students we anticipate good demand for the 2022/23 academic year and beyond.

“This scheme is not only in an excellent location in one of the world’s leading university cities but will also offer students high-quality modern accommodation with amenities.”

To read the digital edition of the latest IPE Real Assets magazine click here. 

Topics

Related Companies