UK Commercial Property REIT portfolio value and NAV drops

UK Commercial Property REIT’s portfolio value dropped from £1.4m to £1.37m in Q4 2019, along with a dip in NAV. The portfolio value stood at £1.4m on 30 September, but nudged down to £1.37m as of 31 December, owing to the REIT’s disposal of retail assets. The company disposed of its remaining shopping centre in Q4 2019 – the Parade in Swindon – which was sold for £23.3m in line with the September 2019 valuation. The REIT also sold its Meadowside House office building in Apsely, Hemel Hempstead, for £11.5m. The sale was made after Hertfordshire County Council decided to renew its lease for another 10 years. The REIT’s net asset value dipped from 90.5p at the end of September to 89.8p at the end of December. Over the quarter, £4.9m per annum of headline rent was secured across 17 lettings, lease renewals and rent reviews, reflecting a combined 10% uplift on the previous rent and 4% ahead of the estimated rental value. Around £130m of uncommitted capital, including £100m of undrawn revolving credit, is available for investment. Will Fulton, lead manager for the REIT at Aberdeen Standard Investments, told EG he is keen to focus o alternatives with that firepower. “We’ve got £130m available to invest at the moment, and we’re looking at, for example, six potential opportunities [with a] combined £180m of value, across the hotel and student spaces,” Fulton said. Ken McCullagh, chair of UKCM, said: “The office market and logistics sector, which the majority of UKCM’s portfolio has been strategically aligned to, have continued to perform well, with favourable supply and demand dynamics in addition to a good occupational market underpinning growth. “While the General Election in December provided the market with greater political stability, our focus remains on active asset management to drive income and on targeting investment opportunities with durable income prospects.” To send feedback, e-mail lucy.alderson@egi.co.uk or tweet @LucyAJourno or @estatesgazette