Straits Trading unit to acquire office and industrial buildings and land in the UK for £130m

Sharanya Pillai

Published Wed, Jun 29, 2022 · 11:37 PM

STRAITS Real Estate, a unit of mainboard-listed Straits Trading, is acquiring a portfolio of office and industrial buildings and several plots of development land in Gloucester Business Park for £130 million (S$219.5 million).

Spanning over 276 acres, the business park (roughly 180 km west of London) has a mix of office, industrial and logistics properties supported by retail and commercial offerings. The portfolio that Straits Real Estate is acquiring comprises 522,000 square feet of net lettable area across 9 properties – 7 are offices and 2 are industrial assets – as well as 6 plots of development land with 830,000 square feet in all.

The existing properties in the portfolio are fully occupied, with the majority of occupiers from the energy, cybertechnology, financial services and healthcare sectors. Tenants include GE Aviation and Lockheed Martin. The weighted average unexpired lease term is 8.1 years to break and 8.7 years to expiry.

The plots of development land includes 5 plots consented for industrial and logistics development, and 1 small plot targeted for retail use. The company aims for the plots to support up to 310,000 square feet of environmental-friendly industrial buildings once fully developed.

“Following our acquisition of Bourne Business Park in Surrey in the UK, we are delighted to acquire this portfolio of high-quality business assets in Gloucester Business Park, as it fits our overall investment focus on new economy assets,” said Desmond Tang, chief executive of Straits Real Estate.

“It offers a balanced blend of recurring income at an attractive yield, while providing upsized return opportunities through the development of logistics warehouses – a sector currently in strong demand.”