F&C Commercial Property Trust has bought an out-of-town retail unit and a distribution warehouse in East Kilbride and Liverpool for a combined £33 mln (EUR 40 mln). FCPT was advised by F&C REIT Asset Management,

The B&Q out-of-town retail unit was purchased for £20 mln, representing a net initial yield of 6.94%. This modern retail warehouse extends to 106,045 sq ft (9,852 m2) and is let to B&Q for an unbroken term of 18 years at an annual rent of £1,468,724 per anum.

G Park, Liverpool comprises a 360,309 sq ft unit let to Exel Europe Limited for a term of 10 years. Purchased from distribution and logistics developer Gazeley, the property constructed in 2009 is let at an annual rent of £1,441,236 with a guarantee from Deutsche Post. The investment was purchased for £13 mln, reflecting an equivalent yield of 8.3%.

Both purchases follow FCPT's recent announcement of a commitment to develop student accommodation in Winchester, bringing the total volume of its commitments to circa £60 mln.

Knight Frank acted on behalf of FCPT on both the East Kilbride and Liverpool acquisitions, while DTZ represented the vendor of East Kilbride with CBRE and Colliers International representing Gazeley.