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Regional REIT sells Leeds development site for £105m

Regional REIT has announced that its asset manager, London & Scottish Property, has exchanged contracts to sell a development site in Leeds for £10.5m, on a subject-to-planning basis, to Unite Students. The 21,000 square foot site, which was acquired by Regional REIT in March 2016 as part of the Wing Portfolio together with the adjacent 19 storey Arena Point office tower (pictured), currently provides leisure accommodation over two levels. Under the terms of the sale, Regional REIT retains the 77,000 square foot Arena Point office tower. It says that it continues to invest in the refurbishment of the remaining floors of the tower and has recently let the 6th and 7th floors to Interserve. Stephen Inglis, a director of Regional REIT and CEO of its investment manager, says that Unite’s development will be complimentary to Regional REIT’s continuing investment in Arena Point, and that they saw an opportunity to realise a circa £9m profit from the adjacent underdeveloped element of the site.

Regional REIT’s portfolio

According to Regional REIT, its investment portfolio, as at 30 June 2017, was spread across 150 regional properties, 1,093 units and 823 tenants. It says that, at this time, its investment portfolio had a value of £640.4m and a net initial yield of 6.7%. The weighted average unexpired lease term to first break was 3.5 years.

About Regional REIT

Regional REIT is a specialist real estate investment trust focused on office and industrial property interests in the principal regional locations of the United Kingdom outside of the M25 motorway. It was formed by the combination of two existing funds previously created by London & Scottish Investments, Regional REIT’s Asset Manager, and Toscafund Asset Management, Regional REIT’s Investment Manager. Regional REIT says that it was created to offer a differentiated play on the expected recovery in UK regional property. It aims to deliver an attractive total return to Shareholders and with a strong focus on income.

Regional REIT sells Leeds development site for £105m : RGL

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