UK Commercial Property sells Barclays Bank in Exeter – UK Commercial Property REIT Limited has sold a retail asset, 16-20 High Street, in Exeter, to a UK pension fund for £23.5m. The price is in line with book value and reflects a net initial yield of 4.75%. The sale follows the completion of the REIT’s asset management plan to create a refurbished store for H&M and the conclusion of a rent review with Barclays Bank, the property’s only tenants.
Will Fulton, Lead Manager of UK Commercial Property REIT at Aberdeen Standard Investments, said: “This sale has been achieved within a short period of our £24.6m acquisition of M8 Industrial Estate in Glasgow, where we identified an opportunity to invest in a high quality asset at an attractive net initial yield of 5.9%, a significant discount to edge-of city industrial yields in many other major cities and where we see an opportunity to grow the existing income and create value through active asset management. This transaction also follows the successful completion of our asset management strategy for Exeter and is line with our strategy to selectively reduce the portfolio’s weighting towards retail. It also enables us to reinvest capital into our future investment pipeline.”
UKCM : UK Commercial Property sells Barclays Bank in Exeter