UK Commercial Property REIT Ltd. purchased a portfolio of five distribution warehouses in Midlands, U.K., from Clipstone Logistics REIT PLC for a headline sum of £85.4 million.
The deal for the 909,030-square-foot portfolio reflects a 5.5% net initial yield. The properties are spread out in Cannock, Derbyshire, Leicester, Stoke-on-Trent and Newcastle-Under-Lyme.
The warehouses are fully leased to a mix of tenants, including Clipper Logistics, Roca Ltd., Bestway Pharmacy NDC Ltd., Rhenus Logistics Ltd. and TJX UK, at a low average headline rent of £5.52 per square foot, and an unexpired lease term of 7.4 years to break and 9.6 years to expiry.
The British real estate company funded the deal through existing cash resources, according to a release.