SGX-listed Elite UK REIT Management Pte. Ltd. has announced a significant acquisition of three government-leased properties in the UK for $11.2m (£9.2m). The properties, located in Dover, Felixstowe, and Carmarthen, are expected to enhance the REIT’s counter-cyclical portfolio by providing a stable income stream backed by government tenants.
The acquisition, negotiated at a 7.6% discount to independent valuations, is set to deliver a gross rental income yield of 9.2%, surpassing the existing portfolio yield of 9.0%. The properties boast a long weighted average lease expiry (WALE) of 7.4 years, contributing to a more diversified and resilient portfolio. The acquisition will be partially funded through a private placement launched on 10 June 2025, aiming to raise at least $4.9m (£4.0m), alongside existing debt facilities and proceeds from previous divestments.
Joshua Liaw, CEO of the Manager, highlighted the strategic importance of the acquisition, stating, “The mission-critical national infrastructure to be acquired dovetails with our proposition of offering investors counter-cyclical income backed by non-discretionary assets amidst macro uncertainty.”
The properties include Priory Court in Dover and Customs House in Felixstowe, both leased to the Home Office, and Tŷ Merlin in Carmarthen, leased to the Department for Environment, Food and Rural Affairs (DEFRA). This acquisition increases Elite UK REIT’s portfolio to 151 assets, with a total valuation rising by 2.2% to $518.5m (£424.8m).
The acquisition aligns with Elite UK REIT’s strategy to reduce portfolio gearing and deliver accretive acquisitions, enhancing value for unitholders. The Manager continues to explore opportunities to optimise its asset portfolio, including potential developments in data centres and student accommodation.
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