Singaporean investor Elite Commercial REIT has bought 58 commercial properties across the UK, predominantly let to government departments, in its first deal since its IPO in February.
The REIT has entered into a conditional share purchase agreement with Elite Bushel Holding, which is a subsidiary of Elite Commercial Fund II, to acquire the portfolio.
Nearly all of the properties are let to government departments, with 82% of buildings occupied by the Department for Work and Pensions.
The portfolio covers 1.3m sq ft across the country and 36% of the buildings are in London.
In addition, 54 buildings are freehold acquisitions and Elite Commercial REIT has seen a 66.6% increase in its valuations from £319.1m to £531.6m.
Elite Commercial REIT Management chief executive Shaldine Wang said: “Notwithstanding the global economic headwinds, the new properties are expected to provide stable cashflows and attractive recession-proof yields, and will maintain the enlarged REIT’s exposure to high-credit-quality UK sovereign tenants in addition to the counter-cyclical DWP.”
Colliers International and BNP Paribas Real Estate advised on the deal.
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