Deal for city centre block
REIT buys central Glasgow office block
Monteith House in Glasgow’s George Square has been bought for £5.75 million by Drum Income Plus REIT.
Key tenants in the eight-storey block include VisitScotland and Skills Development Scotland and the purchase price reflects a yield of 7.6%. It was used as the offices of the Commonwealth Games.
The purchase follows the acquisitions, announced on 6 October, of Duloch Park in Dunfermline, Gosforth Shopping Centre in Newcastle-upon-Tyne and Mayflower House in Gateshead for a combined total of £19.7m.
The company has now completed acquisitions valued at £26m (including costs) since it was listed on 29 May, raising gross proceeds of £31.9m.
Commenting on the acquisitions, John Evans, chairman of Drum Income Plus REIT, said: “We are pleased to continue the significant momentum that has been created since our IPO, reflecting our stated focus on commercial property assets in strong regional locations that offer an attractive yield as well as identifiable asset management and risk controlled development opportunities.
“We are exactly where we want to be at this stage of the company’s development, and have a strong pipeline of attractive investment opportunities currently under consideration.
“Our team has extensive experience of entrepreneurial and proactive asset management and of creating investments that deliver leading revenue and capital appreciation. We are following an asset management strategy that will drive rental growth and maximise additional income opportunities, offering investors an attractive blend of income return and capital growth.”
The vendor is believed to be Alliance Trust.