UK Commercial Property REIT: UKCM acquires the development of a 25m2 pre-let warehouse …

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UK Commercial Property REIT Limited

UKCM acquires development of pre-leased multi-leased industrial warehouse for £ 25million

December 1, 2021: UK Commercial Property REIT Limited (“UKCM” or the “Company”) (FTSE 250, LSE: UKCM), announces that it has further strengthened its significant industrial and logistics portfolio with the acquisition, via an amount of ‘around £ 25million term financing for three new warehouses, known as Sussex Junction, which are currently under construction near Gatwick Airport. The asset is expected to show an attractive development yield of 5.8% per annum.

· This asset complements the existing portfolio and builds on the recent momentum of the Company’s acquisition program created by the purchases of the Manchester retail warehouse park and the income-generating long-term industrial development site. in West London, which totaled nearly £ 70million.

· UKCM’s existing industrial and logistics portfolio, which represents 63% of the Company’s portfolio, generated a total return of 28.3% for the 12 months ended September 30, 2021.

· The company is confident to invest its remaining cash resources in further acquisitions for the foreseeable future, when the board of directors is expected to confirm an increase in the company’s dividend for the fourth quarter of 2021.

· An increase in the dividend would be in line with the statement made in UKCM’s half-year results in July that the potential for a progressive dividend will be considered on the basis of the collection of rents and the deployment of the Company’s financial resources.

The development is expected to be completed in early summer 2022 when it will provide approximately 107,000 square feet of new industrial space to multiple locations spread over three units. Two of the units, covering 56% of the total, are already pre-let on a 15-year lease to CGG Services, a world leader in geoscience technology, at an average rent of £ 13 per m².

The development is delivered to an institutional standard, with strong ESG credentials, and is expected to achieve a BREEAM “Very Good” rating for its envelope and core, as well as an EPC A rating. During the build process, it is possible to ” further improve these references, with the addition of photovoltaic solar panels.

Once built, the asset will consist of three single storey warehouses, unit one being detached and units two and three forming an adjacent terrace. All units have a schedule for storage and distribution.

Conveniently located on the A23 and A272, the units are 15 minutes south of Gatwick and north of Brighton, close to Burgess Hill and Haywards Heath. The region has access to nearly five million people within an hour’s drive and over 85,000 people who live within five miles.

UKCM is managed and advised by abrdn * and has a diverse portfolio of high quality income producing UK commercial properties.

Kerri Hunter, Acting Manager at UKCM, commented:“Due to the nature of the development of this transaction, we are accessing industrial stocks in an incredibly competitive market at a price significantly lower than a rental investment. With an expected development return of 5.8%, the creation of a a high quality multi-leased industrial asset in a solid location with limited available inventory will help deliver improved returns to shareholders. When completed, this asset will add to UKCM’s heavy weighting in Industrials and Logistics, which is expected to continue to perform very well due to strong underlying fundamentals and societal changes. We have a strong pipeline of other exciting acquisitions and are confident that we will deploy the Company’s remaining cash resources for the foreseeable future. “

Lewis Ellis acted for UKCM.

ENDS

For more information, please contact:

Richard Sunderland / Claire Turvey / Emily Smart / Andrew Davis, FTI Consulting

Phone: 020 3727 1000

E-mail: [email protected]

Notes to Editors – UK Commercial Property REIT

UK Commercial Property REIT is an FTSE 250 real estate investment trust listed on the London Stock Exchange. It aims to provide shareholders with an attractive level of income as well as the potential for capital growth and income by investing and managing a diversified portfolio of £ 1.3 billion (as of September 30, 2021). The portfolio has a strong bias towards prime institutional grade properties and is diversified by location and industry across the UK.

* The Company is managed and advised by Aberdeen Standard Fund Managers Limited (the AIFM appointed by the Company).

Further information on the Company’s investment policies, the types of assets in which the Company may invest, the markets in which it invests, borrowing limits as well as details of its management agreements, administration and custodian can be found in the annual report of the Company. Disclosure document. The above documents are available on the Company’s website www.UKCPREIT.com. Hard copies of these documents are available on request, free of charge, through the contact details on the website.

Real estate is a relatively illiquid asset class, the valuation of which is a matter of opinion. There is no recognized market for real estate and there may be delays in realizing the value of real estate assets. Investors should be aware that past performance is no guarantee of future results. The value of investments and the income from them can go up as well as down, and an investor can get back less than the amount invested.

For more information on UK Commercial Property REIT, please visit www.UKCPREIT.com.

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