UK Commercial Property Trust (UKCPT) has spent £60.51m buying industrial park assets from SEGRO. The income from the properties totals £4.67m per year, representing a net initial yield of 7.34%.
The transaction will be financed primarily through the use the £150m credit facility that UKCPT agreed with Barclays Bank in May 2011.
The assets include Emerald Park East in Bristol, a modern industrial estate which generates £1.71m per year; Gatwick Gate in Crawley, yielding £1.11m per year and Motor Park in Portsmouth which generates £1.84m per year.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
The Chairman of UKCPT, Christopher Hill, said of the deal: "This transaction fits well with our strategy of acquiring good quality assets that, particularly in these uncertain economic times, both complement our existing portfolio and offer strong, defensive income characteristics."
UKCPT shares have fallen 6.9% over the last 12 months.
BS
-
What does Reeves’s plan for growth mean for UK investors?Rachel Reeves says she is going “further and faster” to kickstart the UK economy, but investors are unlikely to be persuaded
-
Will China thrive during the Year of the Snake - or will Trump’s tariffs bite?As the Chinese lunar new year begins, investors will be wondering whether allocating to the world’s second-largest economy will “rattle” up some big returns, or whether Trump’s tariffs will take a “venomous bite” out of investment performance
