UK Commercial Property REIT (UKCM), a UK REIT managed by Aberdeen Standard, has strengthened its industrial and logistics portfolio with the £94 mln (€110 mln) acquisition of Precision Park in Leamington Spa, Warwick, UK.
Precision Park includes two distribution units extending to over 380,000 sq ft (35,300 m2), 65,442 sq ft of office accommodation and development land spanning 3.72 acres. The distribution and office units have been refurbished to an excellent standard, while the development site will be speculatively developed to deliver a high quality 67,700 sq ft industrial asset with strong ESG credentials.
Both existing distribution units are currently let to two tenants; IT service management company, Iron Mountain, and The Secretary of State for the Department of Health & Social Care. The office accommodation is also let to two technology-focused tenants, including Tata Consultancy Services and a global social networking provider.
The purchase follows the acquisition of three new warehouse units, known as Sussex Junction, which are currently under construction near Gatwick airport via a £25 mln forward funding, and the £35 mln purchase of West Gate, a medium term redevelopment site on Hangar Lane in West London, which is let to Kantar UK Limited for 10 years.
Kerri Hunter, interim lead manager at UKCM, commented: ‘The property is well located and well let to very strong covenants in good quality buildings, with a life sciences/tech angle. Its purchase is an excellent fit to fund strategy as it is a multi-faceted investment, encompassing all aspects of what we’re trying to achieve - it not only offers solid income streams but also the opportunity to drive superior performance through asset management and development.’
DTRE acted for UKCM.
