LONDON (dpa-AFX) - UK Commercial Property REIT Ltd. (UKCM.L), on Tuesday, said it completed the acquisition of an ASDA supermarket in Torquay, Devon, from Aviva Investors for £16.6 million, representing a net initial yield of 4.70%, rising to 5.24% in July 2021
In a separate transaction, UKCM has also agreed to forward fund the development of a strategically located purpose built student accommodation or PBSA asset at 41-45 Gilmore Place in central Edinburgh for £29.1 million. The deal is expected to close in February 2021, with delivery of the asset due in 2022, in time for the 2022/23 academic year.
The purchases will be funded through existing cash resources, with the company having also disposed of the M8 Interlink Industrial Estate, Coatbridge, for £25.4 million.
UKCM has also agreed to forward fund a new 230-bed PBSA development in Edinburgh, which will comprise over 90% en suite cluster rooms and a small number of studios, with completion expected for the start of the 2022/23 academic year. The land, which has the benefit of full planning permission for the PBSA development, is to be acquired from S1 Developments for £6.5 million with an additional capped funding commitment of £22.6 million.
Following these transactions, UKCM remains well capitalised with £60 million of cash resources available for investment and access to a further £150 million of undrawn revolving debt, the company said.
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