Group lands office space

Drum Property Group’s real estate investment trust (Reit) has completed its seventh UK property purchase, snapping up 24,000sq ft of Grade A office space in Edinburgh for £4.4million.

It takes the total investment in completed acquisitions by Drum Income Plus (Drip) Reit – launched on the London Stock Exchange by Aberdeen-based Drum just last year – to £45.7million.

A further deal awaiting shareholder approval is worth £2.6million.

Welcoming the addition of 3 Lochside Way in Edinburgh Park, a business park near the capital’s bypass road, Drip Reit chairman John Evans said: “Drip Reit is continuing to identify property that delivers on our differentiated investment strategy of assets of between £2million and £15million in strong

“Drip Reit is identifying that delivers on our strategy”

regional locations, with opportunities to increase value.”

Drum, a privately owned, property development and investment business with offices in Aberdeen and Edinburgh, raised £31.8million in private first-round funding for the Reit at the time of its flotation in May 2015.

An additional £2.8million was raised in an initial placing after the publication of a new prospectus in February 2016.

Other investments for the investment vehicle to date include the £4.5million purchase of Duloch Park retail park in Dunfermline, a £2.67million deal for the Mayflower House office complex in Gateshead and the £12.25million acquisition of Gosforth Shopping Centre. Reits receive special tax considerations and typically offer investors high yields.