UKCPT buys Burton upon Trent logistics scheme
UK Commercial Property Trust has forward-purchased a distribution warehouse development in Burton upon Trent, Staffordshire, for £22.2m – reflecting a yield on capital of 5.8%.
The 258,370 sq ft development, sold by logistics specialist Goodman, is in Centrum West industrial park, between Nottingham and Birmingham.
It has been prelet to Palletforce on a 15-year lease at £5.58 per sq ft, and is expected to complete this summer.
UK Commercial Property Trust has forward-purchased a distribution warehouse development in Burton upon Trent, Staffordshire, for £22.2m – reflecting a yield on capital of 5.8%.
The 258,370 sq ft development, sold by logistics specialist Goodman, is in Centrum West industrial park, between Nottingham and Birmingham.
It has been prelet to Palletforce on a 15-year lease at £5.58 per sq ft, and is expected to complete this summer.
Will Fulton, fund manager at Standard Life Investments, which advises UKCPT, said: “The transaction amount represents around 25% of the capital we have available for investment on our balance sheet and whilst improving dividend cover, it also further increases our weighting in the industrial sector. We currently favour this due to the supportive underlying fundamentals, including the continuing growth trajectory of online retail in the UK.”
The deal was funded with proceeds from the disposal of 13 Great Marlborough Street, W1, for £30.5m in January 2017.
UKCPT was advised by Fulwell Capital, while Goodman was advised by CBRE and Avison Young.
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