6th Oct 2015 08:53
LONDON (Alliance News) - Drum Income Plus REIT PLC Tuesday said it has bought three properties for a total of GBP19.7 million, its first acquisitions since it listed on the main market of the London Stock Exchange in May.
The real estate funded bought the Duloch Park retail park in Dunfermline, Scotland for GBP4.5 million, a price which it said represents a net initial yield of 7.4%.
Drum Income also acquired an office completed in Gateshead, Mayflower House, for GBP2.7 million, representing a net initial yield of 9.25%.
Finally, Drum Income exchanged contracts to buy Gosforth Shopping Centre in Newcastle upon Tyne for GBP12.25 million, representing a net initial yield of 7.5%.
Occupancy across the three properties is 96%, the company said, and annual gross rent receivable is GBP1.6 million.
"We are delighted with these first acquisitions since our listing on the London Stock Exchange, which reflect our stated focus on commercial property assets in strong regional locations that offer identifiable asset management and risk controlled development opportunities. Our pipeline of opportunities is healthy and we look forward to announcing further acquisitions in due course," said Chairman John Evans in a statement.
Shares in Drum Income Plus REIT were up 9.5% at 115.00 pence Tuesday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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