11 May 2017
DRIP REIT Announces Prime Retail Park Acquisition
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 £58 million
Drum Income Plus Real Estate Investment Trust (DRIP REIT) has acquired Kew Retail Park in Southport for £8.65 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 £2m and £15m 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 £2 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.
Issued on behalf of Drum Income Plus REIT by Weber Shandwick. For more information, contact: Richard Bright: 0131 556 6649 or 07770 886914. firstname.lastname@example.org