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UK Commercial Property REIT Ltd on Friday said it has agreed to sell a Wembley logistics asset in a £74 million deal. The UK-focused real estate investment trust said it has sold its 186,455 square foot Wembley180 logistics asset in London to Covent Garden IP Ltd, a registered charitable company. UK Commercial Property will receive £74 million for the sale. This reflects a net initial yield of 3.49% and is broadly in line with the March 31 valuation. The company said it has owned the property since 2009 and completed a refurbishment of the asset in 2019. It added that it will use the proceeds to enhance earnings by paying down a ‘substantial’ amount of its £93 million floating rate rolling credit facility. Will Fulton, lead manager at UKCM, said: ‘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.’ Copyright 2023 Alliance News Ltd. All Rights Reserved.
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