Drum Income Plus REIT PLC Acquisition (7839E)
11 May 2017 - 4:00PM
UK Regulatory
TIDMDRIP
RNS Number : 7839E
Drum Income Plus REIT PLC
11 May 2017
Drum Income Plus REIT Acquires Kew Retail Park in Southport
DRIP REIT growth continues taking portfolio to 10 regional UK
investment properties with a gross asset value of GBP58 million
Drum Income Plus Real Estate Investment Trust (DRIP REIT) has
acquired Kew Retail Park in Southport for GBP8.65 million.
The 53,858 square foot investment is currently occupied by
Poundstretcher, Carpetright, Wickes, Carphone Warehouse, Dreams and
Sofology. The purchase price reflects an acquisition yield of 8.78%
and bolsters DRIP REIT's presence in the North West, where it
already has office investments in Cheadle and Manchester.
Welcoming the acquisition, DRIP REIT's Chairman John Evans said:
"By adding Kew Retail Park to the DRIP REIT portfolio we are
maintaining the momentum that has been created since our first
acquisition in August 2015. We are securing regional properties
that fit with our differentiated investment strategy of focusing on
assets between GBP2m and GBP15m which offer opportunities to add
value.
"The positive yield differential that these assets enjoy over
larger and more London and South East located assets persists, and
we believe that the outlook for the regional property market in the
UK remains strong, underpinned by high levels of occupational
demand and a shortage of supply.
"Our experienced management team will continue to follow an
asset management strategy that will drive rental growth and
maximise additional income opportunities, offering investors an
attractive blend of income return and capital growth."
DRIP REIT is an income-focused real estate fund targeting
regional commercial property assets, principally in the office,
retail and industrial sectors where there is an opportunity to
increase income and capital returns via entrepreneurial proactive
asset management and risk-controlled development.
Drum Real Estate Investment Management's Managing Director,
Bryan Sherriff added: "This new addition at Southport provides us
with geographical depth across sectors in the portfolio. We are
fully engaged in delivering numerous value-added opportunities
across the assets and are also paying a dividend ahead of what was
stated in the initial prospectus.
"The asset management ethos is already delivering tangible
results with significant valuation uplift across the portfolio in
excess of GBP2 million."
The Board of DRIP REIT comprises John Evans (Chairman), formerly
of Aberforth Partners, Hugh Little (Chair of Audit Committee),
formerly of Aberdeen Asset Management, and Alan Robertson
(Director) of JLL. Drum Real Estate Investment Management Limited
is the Investment Manager of DRIP REIT.
For more information on the Drum Income Plus REIT, visit:
www.dripreit.co.uk
Ends
For further information please contact:
Drum Real Estate Investment Management
(Investment Manager)
Bryan Sherriff 0131 285 0050
Drum Income Plus REIT Plc
Martin Cassels, Company Secretary 0131 550 3760
Weber Shandwick (Financial PR)
Richard Bright 0131 556 6649
This information is provided by RNS
The company news service from the London Stock Exchange
END
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