Drip Reit Exchanges on Manchester Office.
Drum Income Plus Real Estate Investment Trust (DRIP REIT) has exchanged contracts on another significant acquisition with the purchase of Lakeside 5500 in Cheadle, Manchester.
Lakeside 5500 is a prime multi-let office development with key tenants Micron Europe Limited and Agilent Technologies LDA UK Limited. The purchase price reflects a yield of 7.82%.
The deal follows the acquisitions during the last three months of Monteith House in Glasgow, Duloch Park in Dunfermline, Gosforth Shopping Centre in Newcastle-upon-Tyne and Mayflower House in Gateshead for a combined total of £26 million.
With the completion of the Cheadle deal in January 2016, DRIP REIT will have completed acquisitions valued at £30.65 million since it raised over £30 million at the time of its IPO in May 2015.
DRIP REIT’s Chairman, John Evans said:
“We are maintaining the significant momentum that has been created since our IPO in May 2015, securing a prime property in the North-west of England. Lakeside is an ideal fit for our stated focus on commercial property assets in strong regional locations that offer an attractive yield as well as identifiable asset management and risk controlled development opportunities.
Our team has extensive experience of entrepreneurial and proactive asset management and of creating investments that deliver leading revenue and capital appreciation. We are following an asset management strategy that will drive rental growth and maximise additional income opportunities, offering investors an attractive blend of income return and capital growth."
DRIP REIT is an income focused real estate fund targeting regional commercial property assets, principally in the office, retail and industrial sectors where there is an opportunity to increase income and capital returns via entrepreneurial proactive asset management and risk-controlled development.
Regarding future expansion, Drum Real Estate Investment Management’s Investment Director, Bryan Sherriff added: “Once we have concluded the purchase of Lakeside 5500 in January 2016, the REIT will continue to target commercial property assets in strong regional locations. With a range of lot sizes between £3 and £9 million, and an average initial yield of 7.5%+, our current pipeline is ideally placed to exploit the lack of competition for assets in this class.”