F&C UK Real Estate buys distribution unit
F&C UK Real Estate buys distribution unit – IRP Holdings Limited, a subsidiary of F&C UK Real Estate, has purchased a 59,000 sq ft distribution unit in Basingstoke (Unit K60, Lister Road) for GBP9.56 million, reflecting a net initial yield of 5.2 per cent. The property is let to one tenant, Bunzl UK Ltd, on a lease expiring 2027, at a rent of GBP525,300 per annum. The purchase was funded out of the company’s existing cash reserves. Following the purchase, net gearing was 30.3 per cent.
Commenting on the purchase, Fund Manager Peter Lowe said “industrial and distribution warehouses remain a favoured sector, and the acquisition complements the portfolio’s existing south east holdings, providing secure income, backed by a solid financial covenant while delivering an attractive yield. The property itself is freehold, well configured and fit for purpose, benefits from the tenants long standing and ongoing commitment to the site, and also offers good re-letting prospects”.
FCRE : F&C UK Real Estate buys distribution unit