Regional REIT acquires six office assets in UK for £25.9M

Regional REIT acquires six office assets in UK for £25.9M

Regional REIT, the regional real estate investment specialist focused on building a diverse portfolio of income producing regional UK core and core plus office and industrial property assets, has acquired a portfolio of six office assets located in Birmingham, Bristol, Cardiff, Chester, Glasgow and Manchester for a total consideration of £25.9million.

The assets total circa 172,442sq. ft. and are expected to provide a net income of approximately £2.36 million per annum from 27 tenants; equating to a net initial yield of 8.87% and anticipated reversionary yield of 9.54%. The portfolio’s weighted average unexpired lease term is 4.9 years.

The acquired tenant profile is deliberately diversified across both industry type and geography, with no crossover to existing Regional REIT tenants.

SEE ALSO : Regional REIT buys Norfolk House, Birmingham central office for £20m

”We are delighted to have secured this portfolio of assets which is both earnings accretive and will further enhance the diversity and scale of our property portfolio.There continues to be a significant pipeline of attractive near-term investment opportunities across the UK, for which Regional REIT can utilise its asset management experience and capital resources to provide sector-leading returns for shareholders,” said Stephen Inglis, CEO of London & Scottish Property Investment Management, the Asset Manager

“We look forward to announcing further accretive acquisitions as we invest the proceeds from our recent successful equity raise, taking advantage of the strong opportunities that we are seeing in our markets,” he added.

Regional REIT’s commercial property portfolio is wholly in the UK and comprises, predominantly, offices and light industrial units located in the regional centres of the UK outside of the M25 motorway.