UK Commercial Property makes two acquisitions for £50.8m

UK Commercial Property Trust (UKCPT) has made two acquisitions in Newcastle and Glasgow for £50.8m.

The commercial property investment company has bought the Central Square office building in Newcastle for £21.6m from Parabola Estates, reflecting a net initial yield of 6.4%.

The 72,389 sq ft Grade A office space is multi-let to a range of corporate tenants, producing a combined passing rent of £1.45m a year.

The building, which is located in the new Stephenson Quarter development in central Newcastle, is widely regarded as one of the city's best office buildings, having won a British Council for Offices Award for Best Refurbished Workspace.

UKCPT also bought a 140,000 sq ft leisure scheme in Glasgow for £29.2m, in an off-market transaction.

Located in Glasgow's city centre, the complex is anchored by a 100,000 sq ft Cineworld cinema on a long term lease, with a further 30,000 sq ft of leisure accommodation across three units.

The current rent is £1.66m per year, with scope for further income growth through a range of asset management initiatives, including re-letting the vacant basement leisure unit and reconfiguring the first floor leisure unit, to which a modest capex budget will be allocated.

Will Fulton, fund manager of UKCPT, said: "Individually both of these assets offer good fundamentals in terms of location and specification, and support UKCPT's strategy to reposition the portfolio for sustainable and growing income.”