26th May 2023 08:01
(Alliance News) - UK Commercial Property REIT Ltd on Friday said it has agreed to sell a Wembley logistics asset in a GBP74 million deal.
The UK-focused real estate investment trust said it has sold its 186,455 square foot Wembley180 logistics asset in London to Covent Garden IP Ltd, a registered charitable company.
UK Commercial Property will receive GBP74 million for the sale. This reflects a net initial yield of 3.49% and is broadly in line with the March 31 valuation.
The company said it has owned the property since 2009 and completed a refurbishment of the asset in 2019.
It added that it will use the proceeds to enhance earnings by paying down a "substantial" amount of its GBP93 million floating rate rolling credit facility.
Will Fulton, lead manager at UKCM, said: "This disposal allows us to crystallise the value we have created through both the timely acquisition of an asset in a prime London logistics location and our subsequent active asset management of the property, including a long lease to a global e-commerce business. We will use proceeds of the sale to enhance earnings, primarily by paying down some short-term debt."
By Sophie Rose, Alliance News reporter
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