LONDON (Alliance News) - UK Commercial Property REIT Ltd on Thursday said it bought a multi-let office asset White Building in Reading, England, following the disposal of Bristol office.
The company said the eight-storey property - comprising of 95,903 square feet - was refurbished last year. The asset, once fully let, is expected to deliver an annual rental income of GBP3.0 million.
Currently, the White Building is 82% et to nine tenants, including cybersecurity company Carbon Black, software firm Workday and pharma company Pharma Cosmos.
UK Commercial, in partnership with a client of CBRE Global Investors, has acquired the property from from Boultbee Brooks Real Estate for GBP51 million in cash, based upon a topped up net initial yield of 5.8%.
"We fully expect that the property will continue to benefit from the wider infrastructure investment being undertaken in Reading," said Lead Manager Will Fulton.
In addition, the company said it sold an office building in Bristol city to West Midlands Pension Fund for GBP27.6 million, reduced to GBP26.6 million allowing for a rental top up.
The 69,754 square feet property is entirely let by technology firm OVO Energy Ltd on a lease that expires between April 2023 and April 2026.
"We took the decision to sell 1 Rivergate to crystallise value for our shareholders and remove the potential for capital expenditure at the end of OVO's lease, whilst further diversifying our portfolio and recycling capital into our strong pipeline of investment opportunities," added Fulton.
Shares in UK Commercial were trading 0.2% lower on Thursday at 88.87 pence each.