UKCP REIT buys Reading office for €58m, sells in Bristol

UK Commercial Property REIT Limited, managed and advised by Aberdeen Standard Investments, has acquired an office in the UK town Reading for £51 mln (€58 mln) from Boultbee Brooks Real Estate in partnership with a client of CBRE Global Investors.

The deal volume was based upon a topped-up net initial yield of 5.75%.

The eight-storey property, known as the White Building, was refurbished in 2017 and comprises 95,903 ft2 (89,000 m2). With an 82% occupancy rate and nine tenants, it has a weighted average unexpired lease term of five years to break and is expected to deliver an annual rental income of around £3.0 mln once fully let.

Occupiers include international cybersecurity company Carbon Black, financial management and human capital management software business, Workday, international pharmaceuticals company Pharma Cosmos, and flexible office provider Work.Life.

The acquisition of the White Building is 'in line with our strategy to acquire prime assets with an earnings focus', said Will Fulton, lead manager of UKCP REIT. 'We fully expect that the property will continue to benefit from the wider infrastructure investment being undertaken in Reading, most significantly the Elizabeth Line links to central London and improvements to the public realm.' 

UKCP REIT also announced the disposal of 1 Rivergate, an office building on Temple Quay in Bristol city centre, to West Midlands Pension Fund for £27.6 mln, reduced to £26.6 mln net allowing for a rental top up. The net price is ahead of the 31 March valuation.

1 Rivergate is entirely let to OVO Energy on a lease that expires between April 2023 and April 2026. The asset, which was developed in 2002, comprises 69,754 ft2 over five floors.

UKCP REIT was advised by Knight Frank on the acquisition of the White Building and by Colliers on the disposal of 1 Rivergate.

Boultbee Brooks Real Estate and CBRE Global Investors were advised on the disposal by BBRE’s retained portfolio investment adviser, Aurum Real Estate Partners.

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