UBS Asset Management's (UBS-AM) Real Estate & Private Markets (REPM) business announces that the UBS Triton Property Fund has completed the acquisition of Perth Trading Estate in Slough from CBRE Global Investors for €22m (£19m), representing a yield of 5.1%.
The multi-let estate comprises 131,946ft² of prime industrial space arranged across nine units and one two-storey detached office block, and offers generous parking provisions on site. The asset is let off a low weighted average passing rent of GBP 7.91 per/ft² to seven tenants, including SKANSKA – the multi-national construction and development company, which occupies the largest unit at 40,809ft² – and provides a WAULT of 4.7 years.
Slough is considered one of the UK’s strongest industrial locations, providing easy access to London and the wider South East market. It benefits from first class connectivity, with four major motorways close to the town, and is just 11 miles west of Heathrow airport. The location is expected to receive a further boost from the arrival of Crossrail in 2018, which will serve two local railway stations and will shorten the journey time to Central London to just 30 minutes. Perth Trading Estate has a prominent position within this context, situated directly adjacent to Slough Trading Estate, the largest single owned estate in Europe.
This acquisition is directly in line with the Fund's strategy to acquire dominant multi-let commercial properties in growth locations, with the South East industrial sub-sector proving particularly favourable. The majority of UBS Triton’s current portfolio, which comprises 31 high-quality assets, is located in the South East of the UK and is weighted towards offices, the industrial sector and retail warehousing.
