Regional REIT has acquired two offices, in Swansea and Bristol, for £10.2m at a combined net initial yield of 10.1%.
The group, which owns a diverse property portfolio in regional UK locations, has bought Waterside Business Park in Swansea and 2410 Aztec West in Bristol. Combined, the assets have a weighted average unexpired lease term (WAULT) to first break of 4.2 years.
Waterside Business Park comprises 68,535 sq ft and is set over a 4.1 acre site with ample parking and is let to the Secretary of State for Communities & Local Government and a large legal practice with offices across Wales. The current contracted rent of £690,000 per annum reflects a net initial yield of 11.7% and a WAULT of 4.5 years.
2410 Aztec West, Bristol comprises 22,349 sq ft and is fully let to Liverpool Victoria Friendly Society. The current contracted rent of £406,000 per annum reflects a net initial yield of 8.2% and a WAULT of 3.6 years.
Stephen Inglis, asset manager, said: “These two acquisitions from a major UK institutional investor, further diversify our portfolio, deliver attractive yields, and increase our presence in the South West and Wales, these being locations where we see potential for continued strong economic growth and demand. Additionally, both assets present further asset management opportunities in line with our core expertise, to improve income and create accretive capital value for our shareholders.”
RGL : Regional REIT acquires two offices for £10.2m