UK Commercial Property REIT (UKCM) announced that it has unconditionally exchanged contracts to sell Eldon House, its only office asset in the City of London, to CLI-Dartriver within one of its European private investment programs, for £40 million representing a 3.6% discount to its valuation as at 31 March 2020.
The office property was purchased for £27.8 million in 2015 and the sale follows the completion of an asset management plan which comprised a refurbishment of public spaces, as well as capturing reversionary potential by achieving full occupancy and regearing existing leases.
Eldon House comprises 44,500 sq ft of multi-let office and retail accommodation.
“As the crisis has evolved our team has adapted well to the new working from home environment and has been working hard alongside our tenants to address the challenges caused by the government imposed restrictions. Across our diversified portfolio we have a number of tenants that are performing well, such as many of the occupiers in our large industrial and logistics portfolio, while others are finding life more difficult, meaning we have to balance the priorities of ensuring we maximise rent collection with maintaining a tenant base that can continue to generate income as we emerge from the crisis. We have also focused on progressing our investment strategy and were pleased to have agreed the sale of our Eldon House asset in the City of London,” said Will Fulton, Lead Manager of UK Commercial Property REIT at Aberdeen Standard Investments.