Real estate investment trust UK Commercial Property has acquired an industrial/business park in Warwick focussed on life sciences and technology as part of a deal valued at roughly £94.0m.
UK Commercial Property said on Wednesday that the acquisition of Precision Park in Leamington Spa, which follows the purchase of three new warehouse units and the £35.0m purchase of West Gate on Hangar Lane in West London, includes two distribution units extending to over 380,000 square foot, as well as 65,442 square foot of office accommodation and development land spanning 3.72 acres.
Both existing distribution units were currently let to IT service management company Iron Mountain and The Secretary of State for the Department of Health & Social Care, while the office accommodation was let to two technology-focused tenants, Tata Consultancy Services and an unnamed global social networking provider.
As a result of the purchase of the park, as well as recent other acquisitions and a return to normalised rent collection, UKCM confirmed that it now expects to be in a position to announce an increase in its fourth-quarter dividend payout.
UKCM’s interim lead manager Kerri Hunter said: “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.
“The low-risk nature of the existing portfolio enables us to take on more development, thereby creating more high-quality assets at a significant discount to purchasing up and let stock.”
