Regional REIT has completed the acquisition of two office properties in Swansea and Bristol for a total consideration of £10.2m, with a combined net initial yield of 10.1% and a weighted average unexpired lease term (WAULT) to first break of 4.2years.
Waterside Business Park the two-floor office asset in Swansea, comprises 68,535 sq. ft. and is set over a 4.1 acre site with ample parking. Being situated less than three miles from Swansea City Centre and train station it also benefits from excellent road and rail links. It 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 4.5years.
2410 Aztec West, the two-floor office asset (22,349 sq.ft.) in Brsitol, is fully let to Liverpool Victoria Friendly Society Ltd., and is set in 1.4 acres with 114 car parking spaces. This site also benefits from both excellent road and rail links, given its location next to the M5 motorway and less than three miles from Bristol Parkway train station.
The current contracted rent of £406,000 per annum reflects a net initial yield of 8.2% and a WAULT of 3.6years.
“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,” said Stephen Inglis, Chief Executive Officer of London & Scottish Property Investment Management Limited, the Asset Manager.