Drip Reit Set to Reach £20m Investment Milestone.
Drum Property Group’s Real Estate Investment Trust (REIT), launched on the London Stock Exchange in May 2015, has completed two major UK acquisitions and exchanged contracts on a third, with a combined value of £20 million.
The Drum Income Plus REIT has completed the acquisition of the Duloch Park retail park in Dunfermline for £4.5 million and Mayflower House office complex in Gateshead for £2.67 million, with contracts exchanged on Gosforth Shopping Centre in a deal worth £12.25 million.
Following the three acquisitions, the REIT portfolio will have an average purchase yield of 8.05% with a year one cash on cash return of 10%. The portfolio now delivers an annual gross rent of £1.56 million, with 96% occupancy across the office and retail sites.
The REIT started trading on the Main Market of the London Stock Exchange on 29 May, having already raised £30 million in private first-round funding.