UK REIT Segro and UK Commercial Property Trust (UKCPT), which is advised by Standard Life Investments, have completed a property swap transaction worth around £67 mln (€93 mln).
UK REIT Segro and UK Commercial Property Trust (UKCPT), which is advised by Standard Life Investments, have completed a property swap transaction worth around £67 mln (€93 mln).
As part of the deal, Segro has acquired a 27,800 m2 single-let distribution warehouse in Brackmills, Northampton, for £31 mln. UKCPT has purchased a 54,800 m2 multi-let industrial estate at Ventura Park, Radlett for £67 mln, with the balance of £36 mln being paid by UKCPT to Segro in cash.
Ventura Park is a 35 acre, multi-let industrial estate with 589,302 sq ft of lettable space. Located at Radlett, the estate produces rental income of £4.2 mln per annum from 13 industrial units which are fully let to tenants including DHL and Kelly’s self-storage B&Q, providing a net initial yield of 6.0%.
Will Fulton, fund manager at Standard Life Investments, commented: 'The acquisition of Ventura Park ties in with our wider strategy to reduce our exposure to low-growth retail and invest in stock providing a sustainable income with rental growth potential.'
The property acquired by Segro is a distribution warehouse, built in 1997 and refurbished in 2007. The warehouse is leased to Asda Stores until 2028 with a tenant option to extend the lease for a further five years. The net initial yield on acquisition is 4.7%.
