Drum REIT acquires three properties in £20m deal
Investment group Drum Income Plus Real Estate Investment Trust has completed the acquisition of three UK properties for a combined £20m.
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The London-listed company has acquired the Mayflower House office complex in the Tyne and wear town of Gateshead for £2.67m, as well as the Duloch Park retail park in Dunfermline for £4.5m.
Meanwhile, Drum is also set to complete the acquisition of Gosforth Shopping Centre in a deal worth £12.25m.
"We are delighted with these first acquisitions since our listing on the London Stock Exchange, which reflect our stated focus on commercial property assets in strong regional locations that offer identifiable asset management and risk controlled development opportunities,” said group chairman John Evans.
"Our pipeline of opportunities is healthy and we look forward to announcing further acquisitions in due course."
The group said that following the acquisitions its portfolio, which now delivers an annual gross rent of £1.56m and has a 96% occupancy rate, will have an average purchase yield of 8.05%.
Drum Income shares were up 9.52% to 115.00p at 1536 BST on Tuesday.