- UBS Triton completes acquisition of South-East industrial estate for £30m
Date: 02 Aug 2016
UBS Asset Management's (UBS-AM) Global Real Estate (GRE) business announces that the UBS Triton Property Fund (UBS Triton or the Fund) has completed the acquisition of the Interchange industrial estate in Swanley, Kent for approximately GBP 30 million, representing a yield of 5.51%.
Strategically located at the Swanley Interchange, at the junction of the M20 and M25, the multi-let industrial estate enjoys a key distribution location serving London and the greater South East region. The estate is within a mile of Swanley train station, providing direct services to London Victoria, while Central London is within an hour's drive.
The Interchange was originally built in the 1970's but has been extensively refurbished in recent years and offers 263,623 sq ft of warehouse and industrial space across nine units of varying sizes, in addition to a manned gatehouse. Each unit benefits from a dedicated yard area, single-storey offices and allocated car parking. The estate is currently fully let to eight tenants offering a weighted average unexpired lease term of 6.3 years and is let on an average rent of GBP 6.69 per sq ft.
This acquisition is directly in line with the strategy of the Fund, which focuses on acquiring dominant multi-let commercial properties in growth locations. The majority of UBS Triton's current portfolio, which comprises 31 high-quality assets, is located in the South East of the UK and predominantly weighted towards offices, the logistics sector and retail warehousing.
Howard Meaney, Head of Global Real Estate - UK, commented: "This acquisition presents a rare opportunity for UBS Triton to increase its exposure in the highly sought after South East industrial market, where supply of good quality assets is limited. This property segment is forecast to continue offering strong returns over the coming years on the back of positive dynamics driving the occupier market and expected rental growth. The Interchange in particular benefits from a strategic distribution location, no voids and strong covenants, while at the same time providing several opportunities for our team to add further value for the benefit of our clients through embedded asset management initiatives."
UBS Triton was advised by JLL on this transaction.