Regional REIT has acquired an office asset in one of Scotland’s premier business parks for £10.3m.
The office asset comprises 43,676 sq ft over three floors, currently 100% let to John Menzies, an international aviation business and one of Scotland’s largest companies.
The current contracted rent of £880,000 a year provides a net initial yield of 8.0% with 3.75 years to lease expiry.
The office asset is in Edinburgh Park, firmly established as one of Scotland’s key business parks providing more than 1m sq ft of office accommodation to over 30 occupiers with excellent connectivity to both Edinburgh city centre and Edinburgh airport.
Stephen Inglis, chief executive of London and Scottish Property Investment Management, the asset manager, said: “This is a prime asset in the best position on the internationally renowned Edinburgh Business Park. It is let to a quality tenant and we have been able to take advantage of uncertainty in the UK political and economic outlook at the time of agreeing this deal. This has allowed us to acquire an asset on park dominated by large institutional investors and a market that was simply not previously within our reach given our investment criteria and returns requirements. This acquisition demonstrates our ability to secure deals on favourable terms and offers us an accretive asset management opportunity in the medium term to optimise value for our shareholders. Further, we are delighted to incorporate another major letting to a significant international blue chip tenant within our portfolio.”
RGL : Regional REIT snaps up Edinburgh office for £10.3m