UK Commercial Property Reit Limited

M&A Activity • Aug 20, 2014

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UK COMMERCIAL PROPERTY TRUST LIMITED - Acquisition of Property

PR Newswire

London, August 19

20 August 2014 UK Commercial Property Trust Limited acquires £41 million Swindon Supermarket and Leisure SchemeUK Commercial Property Trust Limited ("UKCPT" or "the Company") is pleased toannounce that it has exchanged contracts to acquire Regent Circus in Swindonfor a consideration of £40.48million at an equivalent yield of 5.3%. RegentCircus isa new, 97,000 sq.ft purpose built family-orientated leisuredevelopment,which is 94% pre-let and anchored by a Morrisons supermarket andCineworldcinema. It is being acquired from developer Ashfield Land.The Morrisons supermarket will open in November, with the leisure elementexpected to open in early 2015. On completion, the scheme will generate £2.1million per annumin rental income (after rent free periods) from leases withan average length of 20years to occupierswith a sound covenant base. The cinemalease also incorporatesfixed rental increases.Regent Circus is the first new retail and leisure scheme to be built in Swindonin a number of years and will provide a modern, prominent andcentral schemewhich will benefit from the town's strong communication and transport links, aswell as a wide and affluent catchment area.The purchase will be financed in part bythe £32 million in proceeds from theCompany's treasury share issue in May with the remainder financed from existingresources. The consideration will be satisfied through a number of stagedpayments with £21.25 million payable around practical completion of thedevelopment in early November and the balance paid in tranches as therestaurant elements are completed.Christopher Hill, Chairman of UKCPT commented:"This acquisition supports theCompany's ongoing investment strategy of acquiring assets that have thepotential for both income and capital growth. It also represents an increase inthe Company's leisure holdings, one of the Company's favoured sectors, and islet to tenants with strong covenants and on terms that will also improve theaverage lease length of the portfolio."The Board ispleased that the Investment Manager has deployed all the proceedsof the treasury share issues in May so soonfor this acquisition. TheInvestment Manager is actively looking at further opportunities in the marketwhere the Company can deploy capital at attractive price levels."For further information:Ignis Investment Services Limited: 0141 222 8000Robert Boag/Graeme McDonaldFTI Consulting: 020 3727 1000Richard Sunderland/Claire Turvey/Clare GlynnUKCPT@fticonsulting.com