F&C UK Property boosts portfolio with three acquisitions

The F&C UK Property fund has increased its number of holdings by half after acquiring three new sites.

The fund, managed by Julian Smith and Guy Glover, has recently completed on £15m of deals in Bristol, Coventry and Chelmsford. This takes the number of properties in the portfolio to a total of nine.

Smith and Glover have bought two offices on Bristol Business Park for £7m. The 27,700 sq ft of space is let to Motability Operations Limited for 15 years at low rents, creating an initial yield of 7%.

The fund has also acquired a 57,000 sq ft distribution unit in Coventry for £3.525m, which offers an initial yield of 8% and is leased to Palm Recycling.

A 4,859 sq ft retail unit on Chelmsford High Street, which is let to Santander UK for 11 years and provides an 11% initial yield, was bought for £4.23m.

Glover comments: “These deals complement the fund by enhancing the length of income to in excess of ten years whilst improving the fund yield, but most importantly are good quality buildings in locations attractive to tenants and are let at sensible rents, providing scope to enhance the income in the future.”

The F&C UK Property fund recently reached its £50m fundraising target and the managers say they will “incrementally” acquire new holdings as its assets under management grow.

Smith adds: “We have always maintained the importance of diversification and have gradually acquired assets in the retail, office, leisure and industrial sectors.

“Geographic diversification is equally important, with properties held across a range of UK locations from Chichester in the south to Edinburgh in the north.”

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