21st Sep 2015 06:24
LONDON (Alliance News) - Fellow FTSE 250-listed property investors SEGRO PLC and UK Commercial Property Trust PLC on Monday sealed a swap deal involving properties in Northampton and Radlett.
Under the deal, industrial property investor SEGRO will pay GBP31.0 million to acquire a modern distribution warehouse in Brackmills in Northampton from UK Commercial Property Trust.
UK Commercial Property Trust will then acquire the Ventura Park industrial estate in Radlett in Hertfordshire for GBP67.1 million. SEGRO said the balance of GBP36.1 million has been paid to it by UK Commercial Property Trust in cash.
"This off-market transaction is in line with our strategy to grow our logistics portfolio by acquiring a modern, well-specified distribution unit, in a prime Midlands location, on a long lease to a single occupier of undoubted covenant strength," said Phil Redding, chief investment officer at SEGRO.
"Following our recent acquisition of Eldon House in the City of London, this transaction is a clear indication of the strong progress we continue to make in repositioning our portfolio and effectively utilising the Company's cash position. The acquisition of Ventura Park also ties in with our wider strategy to reduce our exposure to low-growth retail and invest in stock providing a sustainable income with rental growth potential," said Will Fulton, fund manager at Standard Life Investments, the manager of UK Commercial Property Trust.
By Sam Unsted; [email protected]; @SamUAtAlliance
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