23 November 2015
DRIP REIT Announces Glasgow Acquisition
REIT enjoys continued growth having now purchased four major UK investment properties totalling £26 million.
Drum Income Plus Real Estate Investment Trust (DRIP REIT) has completed another significant acquisition with the purchase of Monteith House in George Square, Glasgow for £5.75 million.
Monteith House is a prime multi-let office development with key tenants VisitScotland and Skills Development Scotland. The purchase price reflects a yield of 7.6%.
The deal follows the acquisitions announced in October 2015 of Duloch Park in Dunfermline, Gosforth Shopping Centre in Newcastle-upon-Tyne and Mayflower House in Gateshead for a combined total of £19.7 million.
DRIP REIT is an income focused real estate fund targeting regional commercial property assets, principally in the office, retail and industrial sectors, where there is an opportunity to increase income and capital returns via entrepreneurial proactive asset management and risk-controlled development.
DRIP REIT has now completed acquisitions valued at £26 million since it raised over £30 million at the time of its IPO in May 2015.
Welcoming the acquisition of Monteith House, DRIP REIT’s Chairman, John Evans 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."
Regarding future expansion, Drum Real Estate Investment Management’s Investment Director, Bryan Sherriff added: “Moving forward, the REIT will continue to target commercial property assets in strong regional locations. With a range of lot sizes between £3 and £9 million, and an average initial yield of over 8% our current pipeline is ideally placed to exploit the lack of competition for assets in this class.”
The Board of DRIP REIT comprises John Evans (Chairman), formerly of Aberforth Partners, Hugh Little (Chair of Audit Committee) formerly of Aberdeen Asset Management and Alan Robertson (Director) of Jones Lang Lasalle. DRIP REIT's property portfolio is managed by Drum Real Estate Investment Management Limited. To find out more please visit DRIP REIT