Singapore-based investment company Straits Trading Company Limited has announced that its subsidiary, Straits Real Estate Pte. Ltd (SRE) has purchased a portfolio of office and industrial buildings and several plots of development land in Gloucester Business Park for approximately £130million.

Covering an area of more than 276 acres, the business park has a strong mix of office, industrial and logistics properties that is supported by strong retail and commercial offerings.

The plots being acquired represent existing commercial property as well as the last remaining development plots within the park.

The portfolio consists of approximately 522,000 square feet of net lettable area across nine properties, seven of which are offices (approximately 311,000 square feet) and two of which are industrial (approximately 211,000 square feet), and 830,000 square feet of development land across six plots, the majority of which are consented for industrial and logistics development.

The existing properties are 100 per cent occupied with the majority of its occupiers stemming from energy, cyber-technology, financial services, and healthcare sectors.

With an attractive weighted average unexpired lease term of 8.1 years to break and 8.7 years to expiry, tenants including EDF Energy, Ecclesiastical Insurance, GE Aviation (Dowty Propellers), and Lockheed Martin are said to provide solid recurring income over the coming years.

The development land includes five plots consented for industrial and logistics development and one small plot at the foot of the entrance targeted for retail use. The plots are said to be well suited for logistics development given its strong connectivity along the M5 and continuing tailwinds from e-commerce growth.

It is hoped that these plots of land within the business park will support up to 310,000 square feet of modern, environmental-friendly industrial buildings once fully developed.

Mr Desmond Tang, chief executive officer of SRE, said: "Following our acquisition of Bourne Business Park in Surrey, UK, we are delighted to acquire this portfolio of high-quality business assets in Gloucester Business Park as it fits our overall investment focus on new economy assets.

"It offers a balanced blend of recurring income at an attractive yield, while providing upsized return opportunities through development of logistics warehouses - a sector currently in strong demand. In addition, the existing properties have predominant exposure to energy, insurance and health sector tenants which are traditionally resilient businesses during inflationary periods. With the acquisition, we continue on track to grow assets under management to SGD3.5 billion in the next few years."