Elite UK Reit to acquire five properties for GBP31.9 mil; convert Dundee asset into student accommodation

Challand House, one of the five properties Elite UK Reit is acquiring (Picture: Allsop website)
Challand House, one of the five properties Elite UK Reit is acquiring (Picture: Allsop website)
Elite UK Reit is buying five UK properties for GBP31.9 million ($54.9 million). The properties are being purchased from wholly-owned subsidiaries of Elite UK Commercial Fund III. The fund is managed by Elite Partners Capital, a unit of Elite Partners Holdings, one of the Reit’s sponsors.
The properties comprise Queensway House in East Kilbride, Scotland; Griffin House in Wigan, Manchester; Penhaligon House in St Austell, Cornwall; Challand House in Pontefract, West Yorkshire; and Bridgend Jobcentre in Bridgend, South Wales.
All the properties are freehold or virtual freehold assets that are fully leased to the UK government. They are expected to contribute an annual gross rental income of about GBP2.6 million. The accretive transaction raises the Reit’s pro forma distribution per unit for its 2025 financial year by 1.3% to 3.051 pence, from 3.011 pence.
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Elite UK Reit is also embarking on a GBP19 million conversion of Lindsay House — a five-storey former office building in Dundee, Scotland — into a 170-bed purpose-built student accommodation asset. The property, located close to Abertay University and the University of Dundee, will include studio bedrooms and communal facilities such as a gym, a laundry room and a dining area. The conversion is slated for completion ahead of the 2027 academic year.
The Reit will fund the acquisition of the new properties and the conversion of Lindsay House through a combination of existing debt borrowings, the issuance of new units to Elite UK Commercial Fund III of approximately GBP8.9 million, and a private placement targeting gross proceeds of approximately GBP7.4 million.
Elite UK Reit is a UK Reit listed on the Singapore Exchange. Its portfolio currently comprises 147 properties across the UK.
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