The F&C Commercial Property trust has made two acquisitions in the north-west and Scotland in deals totalling £33.3m.
The £963m fund, which is managed by Richard Kirby, has bought a 106,045 sq ft modern retail warehouse on Mavor Avenue in East Kilbride for £20m.
Let to B&Q for an unbroken term of 18 years at a current rent of £1.47m a year, the property offers a net initial yield of 6.94%.
A statement from the trust’s board says: “This property provides a long and secure income stream from a covenant to which the company previously had no exposure.”
The trust has also bought a 360,309 sq ft distribution warehouse on G Park in Liverpool.
Let to Exel Europe Limited for a term of 10 years at £1.44m a year, the warehouse was acquired for £13.3m and provides an initial yield of 10.25%.
“This acquisition provides the company with an extremely well specified building, a secure tenant off a low rent, a “store of value” for the future and an attractive income return upon expiry of the rent-free period,” the board says.
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