UK Commercial Property REIT Limited (“UKCM” or the “Company”) (FTSE 250, LSE: UKCM), announces that it has sold its 186,455 sq ft Wembley180 logistics asset in London to Covent Garden IP Limited (“CG”), a registered charitable company. UKCM will receive a consideration of £74 million, which reflects a net initial yield of 3.49% and is broadly in line with the 31 March 2023 valuation.

UKCM has owned the property since 2009 and completed a refurbishment of the asset in 2019 when it let the unit to a global e-commerce company until 2029. UKCM will primarily use the proceeds to enhance earnings by paying down a substantial amount of its £93 million floating rate Rolling Credit Facility (“RCF”), currently costing 6.3% pa.

Will Fulton, Lead Manager at UKCM, comments: “This disposal allows us to crystallise the value we have created through both the timely acquisition of an asset in a prime London logistics location and our subsequent active asset management of the property, including a long lease to a global e-commerce business. We will use proceeds of the sale to enhance earnings, primarily by paying down some short-term debt.”

Dale Bills, spokesman for CG, comments: “The purchase of Wembley180 furthers our efforts to make prudent, long-term investments. Earnings from our investments are expected to support the religious and charitable work of The Church of Jesus Christ of Latter-day Saints in the United Kingdom.”

DTRE advised UKCM. DWS and Knight Frank advised the purchaser on the sale.