UKCM acquires Midlands distribution warehouse portfolio for £85m

UK Commercial Property REIT, which is managed and advised by Aberdeen Standard Investments, has acquired a portfolio of five distribution warehouses in core locations across the Midlands from Clipstone Logistics REIT for £85.4 million ($108.15 million).

The portfolio totals 909,030 square feet and is 100 percent let to a diverse mix of tenants. Tenants include Clipper Logistics, Roca Limited, Bestway Pharmacy NDC Limited, Rhenus Logistics Limited and TJX UK.

The reversionary portfolio provides secure, diversified income and attractive asset management opportunities to capture rental growth and extend lease terms.

The assets are strategically located in established industrial parks across the East and West Midlands, close to the M1 and M6 motorways, at Cannock, Derbyshire, Leicester, Stoke-on-Trent and Newcastle-Under-Lyme.

The transaction increases UKCM’s industrial exposure to 45 percent of the total portfolio value (with approximately 27 percent now comprising South East and London urban industrial/logistics asset and 18 percent in strategic regional locations). The acquisition was funded from existing cash resources, recycling capital from the strategic disposal in October 2018 of lower yielding assets: a high street retail asset in Exeter for £23.5 million ($29.76 million) and a London office at 15 Great Marlborough Street for £73.2 million ($92.7 million).