26th Feb 2016 08:29
LONDON (Alliance News) - Drum Income Plus REIT PLC on Friday said it has purchased a retail park in Gloucester and an office building in Manchester for a total of GBP9.7 million, meaning it has now acquired seven properties since it was listed on the Main Market of the London Stock Exchange in May last year.
The real estate investment trust said it has acquired multi-let office building Arthur House in Manchester for GBP4.4 million, reflecting an initial yield of 8.9%. It said the office is occupied by 23 firms.
Drum Income also bought 108 Eastern Avenue Retail Park in Gloucester for GBP5.3 million. The retail park is fully let and the price reflects an acquisition yield of 8.4%.
The two purchases mean Drum Income has completed seven acquisitions since it was admitted to trading in May last year. The seven properties have a total value of GBP40.4 million.
"We are extending the significant momentum that has been created since our initial public offering in May 2015, securing regional properties that fit with our differentiated investment strategy of focusing on assets between GBP2.0 million and GBP15.0 million that offer opportunities to add value," said Chairman John Evans.
"We continue to follow an asset management strategy that will drive rental growth and maximise additional income opportunities, offering investors an attractive blend of income return and capital growth," Evans added.
Drum Income shares were untraded on Friday, having last traded down 4.1% at 105.00 pence.
By Hannah Boland; [email protected]; @Hannaheboland
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