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UK Commercial Property buys UK tower for £51M, sells office asset for £28M

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UK Commercial Property buys UK tower for £51M, sells office asset for £28M

Through a joint venture with a CBRE Global Investors client, UK Commercial Property REIT Ltd. purchased the White Building in Reading, U.K., for approximately £51 million from Boultbee Brooks Real Estate.

The acquisition price, which the trust will pay for using existing cash, was based off a 5.75% topped-up net initial yield, according to a release.

The eight-level, multi-let office building on King's Road in Reading was remodeled in 2017, and offers 95,903 square feet of space that is 82% occupied by nine tenants on a weighted average unexpired lease term of five years to break. Once the tower is 100% occupied, it is expected to yield approximately £3 million in yearly rental income. Carbon Black, Workday, Pharma Cosmos and flexible office provider Work.Life are some of the tenants leasing space in the building.

Separately, the real estate investment trust shed its 1 Rivergate office asset at Temple Quay in Bristol, U.K., for £27.6 million to West Midlands Pension Fund. The sale price was lowered to £26.6 million after accounting for a rental top-up.

The five-story, 69,754-square-foot office building is fully occupied by energy technology company and supplier OVO Energy Ltd. through a lease agreement that will mature between April 2023 and April 2026.