Regional REIT adds eight offices to its portfolio
Regional REIT (RGL) has announced that it has exchanged and completed on contracts to purchase eight assets for £31.4 million. (Update 24/08/2018) the acquisition was completed on 23rd August 2018.
Regional diversification
The portfolio is spread out from the Stockton-on-Tees in the North to High Wycombe in the South. The other five offices are located in Hull, Ipswich, Clevedon, Wakefield, Deeside and Lincoln.
The portfolio
The assets total circa 275,000 sq. ft., let to 24 tenants. The assets are expected to provide a net income of approximately £2.81 million per annum, which equates to a net initial yield of 8.66%.
Comment from Stephen Inglis, CEO of London & Scottish Investments Limited, the Asset Manager to Regional REIT
“This acquisition once again highlights our disciplined approach to capital management, with disposal proceeds being promptly redeployed ensuring minimal cash drag. The difference between the yields of this portfolio and that of recently disposed assets provided us with a clear arbitrage opportunity and highlights our policy of making income accretive acquisitions.
“In addition, the portfolio, which presents good asset management opportunities, complements our existing income streams and further diversifies both our tenant base and our exposure to different regions.”
More on Regional REIT
Regional REIT is a joint venture between London & Scottish and Toscafund investing in regional property. the company offers a diversified, office and light-industrial led portfolio across the United Kingdom’s regions, outside of the M25 motorway. Regional REIT has been active in recent months, with the issue of a bond for £50 million, the transaction reported above and the sale of a retail partk in Scotland and the completion of a sale to Unite Students in Leeds. As at 31 December 2017, the portfolio is diversified amongst 164 properties, with 1,368 individual units with a total of 1,026 tenants.