Regional REIT reports on a disposal and on letting news – Regional REIT (RGL) has completed a sale of Cheshunt office site for £17.25m and has agreed the first letting for Aztec West.
Disposal of Cheshunt office site
The company, which is a REIT that specialises in UK regional office and industrial property, has announces it has exchanged and completed on the sale of Turnford Place, Great Cambridge Road, Cheshunt for £17.25m. This reflects a net initial yield of 5.8%.
The 59,176 sq. ft. modern office block site was originally acquired by Regional REIT on 27 December 2017 as part of the Newton portfolio. At that time, the office development was valued at £14.3m. The sale price marks an uplift of 20.6% against the 31 December 2017 valuation.
New letting at Aztec West
The company also finalised the first letting of space at 800 Aztec West in Bristol. The Aztec West site, which comprises 73,000 sq. ft. of office space in total, was acquired in January 2016 as part of the Rainbow portfolio.
Regional REIT has overseen a comprehensive £6.9m refurbishment of the site, which includes full re-cladding, a new double height fully glazed entrance and atrium reception, shower facilities, cycle storage and electric vehicle charging points amongst other improvements including the enhancement of the energy efficiency of the building to a “B” rating.
Under the ten-year agreement, Edvance SAS will lease 31,000 sq. ft. at a headline rental rate of £21.50/sq. ft.. Regional REIT have worked with Edvance to provide flexibility around lease durations on the space with provisions for breaks and incentives.
Comment from Stephen Inglis, CEO of London & Scottish Investments Limited, the Asset Manager to Regional REIT
“Both these transactions demonstrate our active approach to portfolio and asset management. With Cheshunt, we again saw an opportunity to realise returns at a significant premium to the property 31 December 2017 valuation. In line with our business strategy, we will look to redeploy the proceeds into acquiring other assets where we can add value and thereby drive yields.
At Aztec West, we took the rare decision to take on a fairly large renovation project because there was clear market demand and a lack of quality office space in the area. Consequently, we have significantly driven the rental value, which will in turn improve valuation and yield.”
RGL : Regional REIT reports on a disposal and on letting news