Elite UK REIT Strengthens Balance Sheet, Eyes Growth in Living Assets and Data Centres
SGX:MXNU.SI:Elite UK REIT
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Elite UK REIT, the only UK-focused REIT listed in Singapore, has brought its net gearing down by 680 basis points to 40.7% as of June 30 — its lowest since 2023. CEO Josh Liaw, who took over in June 2023, said the past two years were about fortifying the REIT’s capital structure, but the focus is now shifting back to growth.
Capital Strengthening Moves
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Raised GBP28 million through a preferential offering in 2024.
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Secured up to GBP215 million in debt refinancing from diversified lenders.
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Cut borrowings by GBP50 million since 2023 via fundraising, settlements, and divestments.
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Divested Hilden House and Crown Buildings for GBP4 million, 7.9% above valuation.
Government-Leased Acquisitions
In June 2025, Elite UK REIT raised GBP4 million in equity to help fund a GBP9.2 million acquisition of three government-leased assets — Priory Court, Custom House and Tŷ Merlin — at a 7.6% discount to valuation.
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Priory Court (Dover): Home Office customs and immigration hub, also shared with HMRC; lease expiry 2031 with potential extension.
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Acquisitions lifted 1HFY2025 DPU by 10% y-o-y to 1.54 pence.
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Non-DWP tenants now make up a larger share, though the Department for Work and Pensions still accounts for 92.3% of gross rental income.
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Portfolio occupancy improved to 95%, or 97% excluding repositioned assets.
PBSA Expansion in Scotland
Elite UK REIT won approval in July to convert Lindsay House, Dundee, into a 168-bed purpose-built student accommodation (PBSA). The project addresses a severe student housing shortage, with a student-to-bed ratio of 3.5x.
Data Centre Plans in Blackpool
A planning application for an 80MW data centre at Peel Park, Blackpool remains under review. The site, located near a key transatlantic subsea cable, has secured 120 MVA of power.
Valuation rose 36% y-o-y to GBP32.8 million at end-2024. DBS Group Research estimates the site could reach GBP45–50 million, with divestment of a stake seen as a key catalyst.
Portfolio Anchored by Government Tenants
Elite UK REIT remains the UK’s largest provider of mission-critical infrastructure for government departments, mainly Jobcentres. Liaw said demand from the NHS could add new tenants as agencies trial property-sharing.
Talks are ongoing with the DWP to extend leases beyond 2028. Rental income remains backed by the UK’s AA-rated sovereign credit, with zero arrears and advance payments.
Stable Sponsorship
In August, Elite Partners Holdings acquired Sunway RE Capital’s 15% stake in the REIT manager, leaving Elite Partners and Ho Lee Group as sole sponsors since IPO.
Liaw said Elite UK REIT’s 100% freehold portfolio and strong banking ties keep it resilient: “We’ve de-risked, we’re positioned for growth in living and digital sectors, and it’s business as usual for the REIT.”
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