UKCM Buys Precision Park For £94 Mln; Plans To Lift Dividend – Quick Facts

UK Commercial Property REIT Limited (UKCM.L) announced Wednesday the acquisition of Precision Park in Leamington Spa, Warwick for about 94 million pounds.

Further, the Board confirmed that it expects to be in a position to announce an increase in the dividend in relation to the fourth quarter of fiscal 2021, with the purchase of this industrial and business park, as well as the recent other acquisitions and given normalised rent collection.

Precision Park includes two distribution units extending to over 380,000 sq ft, 65,442 sq ft of office accommodation and development land spanning 3.72 acres.

Both existing distribution units are currently let to two tenants; IT service management company, Iron Mountain Ltd, and The Secretary of State for the Department of Health & Social Care.

The office accommodation is also let to two technology-focused tenants, including Tata Consultancy Services and a global social networking provider.

It is expected that the company’s gearing will increase to 15% as a result of the transaction.

The latest deal follows the acquisition of three new warehouse units, known as Sussex Junction, which are currently under construction near Gatwick airport through about 25 million pounds forward funding, and the 35 million pounds purchase of West Gate, a medium term redevelopment site on Hangar Lane in West London, which is let to Kantar UK Limited for 10 years.

Kerri Hunter, Interim Lead Manager at UKCM, said, “It is part of a strong pipeline of additional interesting assets UKCM is looking to invest in and builds on the Company’s strong portfolio of recent acquisitions, which includes the income-accretive medium term industrial development site in West London and the forward funding of Sussex Junction.”

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