Regional REIT Limited has announced the sale of two assets. Blythswood House, 200 West Regent Street, Glasgow, has been sold to Standard Life Investments for GBP17.4m, reflecting a net initial yield of 5.0%. The property was acquired in 2014 and then the previous lease was surrendered with a back-to-back letting-on a 25-year lease to Glasgow School of Art as a student residence. This represents a profit to the Group on acquisition and construction costs of over 60%, and is in line with the valuation at June 2015.
Unit A, Spectrum Business Park, Wrexham, a standalone industrial unit let to Calypso Soft Drinks on a lease until October 2020. The property has been sold for GBP4.1m, reflecting a net initial yield of 8.5%, 22% higher than the valuation at June 2015.
In addition Regional REIT has completed a new 10-year agreement with Regus for 30,000 sq.ft. of floor space at Tay House, 200 Bath Street, Glasgow. Regus will take a Management Agreement for their Spaces Concept which will be the first in the UK outside of London and only the fifth worldwide. The Management Agreement will produce a rent of c. GBP750,000 net per annum when fully occupied. The quality of the building and location has proven attractive to Regus for their Spaces Concept. This leaves available to let only c. 20,000 sq.ft. of the 157,000 sq.ft. Grade A office building.
RGL : Regional REIT sells Blythswood House in Glasgow