FINANCE: UK Commercial Property Trust’s NAV per share rose by 6.8% to 78.1p per share in the six months to 30 June, powered by an increase in the portfolio’s capital value.
The vacancy rate in the £1.1bn portfolio stands at 3.7%. Rental income for the period was £68.4m, a slight reduction from the £68.5m achieved as of 31 December. This is due to a number of lease expiries and instances of tenants exercising break clauses, according to a company statement.
The company also announced its acquisition of Regent Circus, a 97,000 sq ft family orientated leisure development in Swindon, for £40.5m. The property is being sold by Ashfield land at a net initial yield of 94%.
The new development is 94% prelet and anchored by a Morrisons supermarket and Cineworld cinema. The supermarket is set to open in November, and the leisure element in early 2015. The purchase is being financed in part by a £32m share issue in May.
Christopher Hill, the company’s chairman, said: “The UK is experiencing a sustained recovery coupled with improving business confidence that is now resulting in the expansion of most sectors of the economy and has resulted in considerable yield compression over the past 12 months.
“We believe this trend will continue throughout 2014 and extend beyond London, playing to the strong weighting of the company’s portfolio to the UK regions.”
sophia.furber@estatesgazette.com
