Drum buys George Square office building for £5.75m

Monteith House, in the centre, has been bought by Drum Income Plus Reit. Picture: Robert Perry
Monteith House, in the centre, has been bought by Drum Income Plus Reit. Picture: Robert Perry
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Monteith House on Glasgow’s George Square has been acquired by Drum Income Plus Reit for £5.75 million.

The deal brings the total value of purchases by the real estate investment trust (Reit) to £26 million since it was floated by property developer Drum on the London market in May.

Monteith House is a prime office development on George Square, with key tenants include VisitScotland and Skills Development Scotland. Drum said the purchase price reflects a yield of 7.6 per cent.

The purchase follows last month’s acquisitions by Drum of Duloch Park in Dunfermline, Gosforth Shopping Centre in Newcastle-upon-Tyne and Mayflower House in Gateshead for a combined total of £19.7m.

John Evans, chairman of Drum Income Plus Reit, said: “We are pleased to continue the significant momentum that has been created since our initial public offering, reflecting our stated focus on commercial property assets in strong regional locations that offer an attractive yield as well as identifiable asset management and risk controlled development opportunities.

“We are exactly where we want to be at this stage of the company’s development, and have a strong pipeline of attractive investment opportunities currently under consideration.”