LONDON: UK Commercial Property REIT Limited (UKCM) has sold Motor Park in Portsmouth, a multi-use asset predominantly comprising of seven car showrooms, to Glasgow City Council for £29.8 million.

The sale price represents a 3% discount to the December 2019 valuation and provides UKCM with additional capital to invest in markets with strong underlying fundamentals, including alternatives.

UKCM has undertaken a programme of active asset management, increasing the weighted unexpired lease length at the asset with new leases to Snows Business Holdings, which operates BMW, Mini and SEAT franchises, and Harwoods, which operates the Audi franchise, signed last year.

UKCM also recently completed its £18.1 million sale of Broadbridge Retail Park in Horsham, in line with the September and December valuations, following the exercise of an option by Delancey and Tritax which had been agreed in November 2019.

Will Fulton, Lead Manager of UKCM at Aberdeen Standard Investments, said: “Through our successful asset management activity we were able to increase the average unexpired lease length at Motor Park and enhance its value, which we have crystallised for our investors with this sale. These disposals also give us additional firepower to reinvest into attractive, income accretive assets, for example in the alternatives sector, where we see longer term opportunity to deliver reliable returns.”