The investment objective of UK Commercial Property REIT is to provide shareholders with an attractive level of income together with the potential for capital and income growth from investing in a diversified portfolio of UK commercial properties.
UK Commercial Property Trust was launched in September 2006, registered as a Guernsey investment company and has a full listing on the London Stock Exchange (FTSE 250).
The initial offering raised £530m and the proceeds were used to acquire a portfolio of properties from closed life funds held by Phoenix Group Holdings.
Similar exercises were undertaken in February 2007 and October 2009, whereby separate property portfolios were purchased from Phoenix life funds. These transactions were financed by further share issues of £360m and £111m respectively and in the case of the latter, in conjunction with the partial drawdown of a £80m Lloyds Group plc debt facility secured in June 2008.
In January 2010, a further £150m shares were issued to finance further dividend accretive acquisitions and portfolio initiatives. Further share issuance took place throughout 2014.
In April 2015, the Company agreed a twelve year £100m debt facility provided by Cornerstone Real Estate Advisers Europe LLP on attractive terms. This was used to refinance the £80m Lloyds facility due to expire in June 2015. In addition the 2018 £150m Barclays loan facility was extended out to 2020 and the margin on this loan was reduced. These two refinancings resulted in the Company’s blended average interest rate falling from 3.85% per annum to 2.89% per annum, the lowest in the Company’s peer group. In addition, the Company also secured a £50million Revolving Credit Facility from Barclays to provide additional resource and allow the Investment Manager to target further attractive investment opportunities.
On 29 May 2018 shareholders voted in favour of the Company converting to a UK REIT and changing its name to UK Commercial Property REIT Limited. These changes took effect from 1 July 2018.