F&C UK Real Estate Investments Limited
12 October 2017
F&C UK Real Estate Investments Limited (‘FCRE’)
Purchase of Unit K60, Lister Road, Basingstoke
IRP Holdings Limited, a subsidiary of FCRE, has purchased a 59,000 sq ft distribution unit in Basingstoke for £9.56 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 £525,300 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 ‘.
The Company Secretary
Northern Trust International Fund Administration Services (Guernsey) Limited
St Peter Port
Tel: 01481 745001
Fax: 01481 745051
F&C Investment Business Ltd
Tel: 0207 628 8000
Fax: 0131 225 2375