Commercial property in UK REIT continued to strengthen its industrial and logistics capacities wallet with the £ 94m acquisition of Precision Park in Leamington Spa, Warwick, which includes a government-leased ‘Megalabs’, aimed at increasing the UK’s daily testing capacity for COVID-19.
Precision Park includes two distribution units spanning over 380,000 square feet, a 65,442 square foot office and development land covering 3.72 acres, which will be developed on a speculative basis to provide industrial assets of 67,700. square feet.
The existing distribution units are currently leased to two tenants: the IT services management company, Iron Mountain Ltd; and the Secretary of State at the Ministry of Health and Social Affairs. The latter is located in a unit dedicated to being one of two British ‘Megalabs’, aiming to increase the UK’s daily testing capacity for COVID-19. The unit itself is designed to help create up to 4,000 jobs and is a key part of the UK’s national infrastructure response to future outbreaks, as well as adding diagnostic capacity for d ‘other serious illnesses.
The office is also leased to two tech-focused tenants, including Tata Consultancy Services and a global social media provider.
The purchase brings the company’s total committed investment for the year to nearly £ 233million, while industrial and logistics now represent 63% of the company’s portfolio.
With the purchase, the Read our guide to Boards and Directors" class="glossary_term">advice confirmed that she expects to be able to announce an increase in the dividend compared to the fourth quarter of 2021.
Kerri Hunter, Acting Leader, said: “The property is well located and well rented with very strong covenants in good quality buildings, with a life science / tech angle. Buying it is a great fit into the fundraising strategy as it is a multi-faceted investment, encompassing all aspects of what we are trying to accomplish – it not only offers strong revenue streams, but also the opportunity to generate superior performance through asset management and development. . The low risk nature of the existing portfolio allows us to undertake more development, thereby creating more high quality assets at a significant discount compared to buying and leasing stocks.
“This is part of a strong portfolio of additional attractive assets in which UKCM seeks to invest and builds on the company’s strong portfolio of recent acquisitions, which includes the medium-term, income-generating industrial development site in West London and the Sussex Junction Term Fund. “
UKCM: UK Commercial Property REIT acquires COVID lab in £ 94million deal
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