Life sciences and tech focus attracts UKCM to £94m park
UK Commercial Property REIT has bought Precision Park in Leamington Spa, Warwickshire, for £94m as part of a focus on assets with “durable” income streams.
Precision Park includes two distribution units extending to more than 380,000 sq ft, 65,442 sq ft of office accommodation and development land spanning 3.72 acres. The firm said that a further 67,700 sq ft of industrial space would be developed on the land.
The existing industrial units are let to IT service management company Iron Mountain, and the Secretary of State for the Department of Health & Social Care. The latter is situated in a unit dedicated to being one of the two UK megalabs, aimed at increasing the UK’s daily testing capacity for Covid-19.
UK Commercial Property REIT has bought Precision Park in Leamington Spa, Warwickshire, for £94m as part of a focus on assets with “durable” income streams.
Precision Park includes two distribution units extending to more than 380,000 sq ft, 65,442 sq ft of office accommodation and development land spanning 3.72 acres. The firm said that a further 67,700 sq ft of industrial space would be developed on the land.
The existing industrial units are let to IT service management company Iron Mountain, and the Secretary of State for the Department of Health & Social Care. The latter is situated in a unit dedicated to being one of the two UK megalabs, aimed at increasing the UK’s daily testing capacity for Covid-19.
The office space is let to Tata Consultancy Services and a global social networking provider. UK Commercial Property REIT, also known as UKCM, said the area was “set to become a more established location for prime tech products”.
Kerri Hunter, interim lead manager at UKCM, 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 multifaceted investment, encompassing all aspects of what we are trying to achieve – it offers not only 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.”
UKCM said this latest deal took its total committed investment for the year to almost £233m, 80% of which was transacted in the past three months, and that the Precision Park deal formed part of a strategy to “maintain a portfolio with a solid bedrock of assets, with strong real estate fundamentals and durable income streams, supplemented by assets with tactical risk to drive enhanced performance”.
DTRE acted for UKCM on the Precision Park deal.
To send feedback, e-mail samantha.mcclary@eg.co.uk or tweet @samanthamcclary or @EGPropertyNews
See which agents are doing the most industrial deals in the West Midlands with our On-Demand Rankings >>
