Regional REIT to sell Tokenspire park for £11.1m – Regional REIT (RGL) has reached an agreement to sell Tokenspire Business Park in Beverley for £11.1m. The sale price is 30.6% higher than what RGL paid (£8.5m) and represents a net initial yield of 7%.
Tokenspire covers more than 24 acres and consists of 322,211 sq. ft. of commercial space; it was purchased in March 2016. RGL’s asset manager, London & Scottish Property Investment Management (LSPIM), pushed up occupancy from 73.8% to 94.3%, over the holding period.
Rental income was increased to around £829k per year, an increase of 24% since acquisition. Key tenants include: QDOS Entertainment Limited, Sargent Electrical Services Limited and TAPCO Europe Limited.
Sale proceeds to be recycled into pipeline opportunities
Stephen Inglis, CEO of LSPIM, had this to say on the sale: “We have maximised shareholder returns by selling an asset we have completed the business plan on into a competitive attractive market for multi-let industrial properties.
We have a very substantial pipeline of acquisition opportunities and we will be recycling the proceeds of this sale into assets offering asset management initiatives, rental growth potential and thus higher future returns”.
RGL: Regional REIT to sell Tokenspire park for £11.1m