Regional REIT has completed the acquisition of a Grade A office asset in Cardiff for £8.4m.
The four-floor Grade A office asset (61,641 sq. ft.) is set in a 6.0 acre site with some 200 dedicated car parking spaces and is located in Global Reach, Cardiff. It benefits from excellent transport links, being within a five-minute drive to Cardiff city centre as well as the M4 motorway.
It is fully let to Relx UK Ltd, NFU Mutual Insurance, The British Diabetic Association, Active Quote Ltd, Source Insurance Ltd and Wilmott Dixon Construction Ltd with a rent of £803,000 (£13.02 sq.ft.) per annum, reflecting a net initial yield of 8.9%, and a weighted average unexpired lease term of 5.0 years to expiry, and 2.6 years to the first break.
Stephen Inglis, Chief Executive Officer of London & Scottish Property Investment Management Limited, the Asset Manager commented:
“We are pleased to announce the acquisition of this Grade A flagship office property and further positive rent collection details from across the Company’s portfolio. The acquisition benefits from being fully let to high quality occupiers, coupled with the potential for our asset management platform to instigate bespoke property initiatives for the benefit of our tenants and increase the income yield still further from the already high 8.9%, unlocking long term capital value accretion.
Our close working relationships with the Company’s highly diversified tenant base continues to be reflected by ongoing strong rent collection progress with year to date collection currently amounting to 96.6%. We anticipate these receipts will continue to increase in line with our expectations with the vast majority of the balance expected to be received in due course.”
In addition, Regional REIT said that rent collection across the portfolio has increased to 93.5% in Q3 from 90.8% as previously announced on 14 October 2020.
”As at 30 October 2020, it had collected 96.6% of rent due for the year to date, adjusting for monthly rent and agreed collection plans, which compares with the 98.1% of rent collected for the equivalent period in 2019,” said in the statement.