Canadian group BMO's property arm said on Monday that its UK Property Fund has completed three acquisitions for a total of £49.4 mln (€55 mln).
Together the new assets provide a blended initial income return of 5.14% while further increasing the portfolio’s weighting towards the office and industrial sectors.
The acquisitions comprise a modern, industrial warehouse unit in Portsmouth, an office building in the Yorkshire financial and commercial centre of Leeds and a mixed-use asset in Bath.
The warehouse unit in Portsmouth provides 39,850 sq ft (3,700 m2) of space offering medium-term reversionary potential.
Minerva House in Leeds is a 58,000 sq ft, 11-storey office building that was comprehensively refurbished in 2016. It is multi-let with a weighted average unexpired lease term of around nine years.
Finally, Cambridge House in Bath is a mixed-use office, leisure and retail property in the heart of Bath, comprising 52,400 sq ft fully let to six tenants. With a reversionary yield of 5.81%, the property offers significant potential to generate income growth.
'These latest transactions reflect our disciplined efforts to deploy the fund’s equity into opportunities that will further improve income returns and, importantly, offer potential to unlock value with our asset management expertise,' said Guy Glover, fund director of F&C UK Property Fund.
The F&C UK Property Fund is an open-ended Property Authorised Investment Fund with a portfolio of £560 mln, split across the all sectors but with a weighting towards office and industrial.
