UK Commercial Property Trust (UKCPT), the UK’s largest property investment trust, has just purchased some prime Leicester retail space after buying St George’s Retail Park.
This latest purchase completes the investment of the £150 million equity raised by UKCPT in February last year and continues to increase the firm’s exposure to retail warehousing.
UKCPT, managed by Ignis Real Estate, purchased the property for £49.9 million and are hoping that the move will make strong returns for the Company.
With 165,419 sq ft of retail space in the centre of Leicester, the site currently houses a Wickes, PC World, Curry’s and Next amongst others which all pay a rent of around £3.1 million each per year.
Christopher Hill, Chairman of UKCPT said; “The St. George’s Retail Park is an excellent site with a very high quality tenant profile, providing an attractive yield of over six per cent on our investment. It also offers significant potential to build the rental income through a programme of proactive asset management.
“The UKCPT team at Ignis Real Estate has a strong track record in the management of retail property throughout the portfolio, and I am confident that our experienced asset management team will create value through this transaction.”
Robert Boag, Senior Investment Director of Ignis Real Estate commented that although the previous owners JP Morgan Asset Management did a good job of managing the park, he believes that Ignis can improve the profile of St Georges and in turn improve rental and capital growth.
Ignis Real Estate recently closed the deal on two new Sainsbury’s stores in Brighton and with the new Retail Park in Leicester the foray in to retail letting is proving to be positive.