United Kingdom based real estate investment trust Regional REIT has acquired three office properties in Derby, Milton Keynes and Crawley for £48.2 million, reflecting a blended net initial yields of 8.7%.
The company acquired;
– Orbis 1-3 in Derby for £19.8m, reflecting net initial yield of 8.6%. Orbis 1-3(totalling 122,153 sq. ft.) are situated on a 7.54 acre site on the prime Pride Park business park. The offices (EPC B) are currently 100% let to the DHU Healthcare C.I.C.,which provides partner services to the NHS, Firstsource Solutions UK Ltd., and Tentamus Pharma (UK), a specialist pharmaceutical company, with a contracted rent of £1.8m per annum (pa) (£14.93 psf.).
– Linford Wood Business in Milton Keynes for £15.9m, reflecting net initial yield of 8.9%. The property (totalling 115,315 sq. ft.) is set in 8.4 acres, in close proximity to Central Milton Keynes, with extensive parking. Milton Keynes is in the ‘UK Growth Corridor’ between Oxford and Cambridge, the UK Government’s vision for maximising population growth, business expansion and economic output. It comprises one single-let and four multi-let office buildings, all of which are rated EPC C, and are let to a range of high quality tenants, including Kantar Consulting and IM Serve Europe, producing an income of £1.5m pa (£14.53 psf.).
– Origin 1 (EPC B) & 2 (EPC C) in Crawley for £12.5m, reflecting net initial yield of 8.4%. The property (totalling 45,855 sq. ft.) comprises two office buildings, which are situated on a 1.9 acre corner site on Crawley High Street. The three and four storey offices being fully let generate in aggregate a rent of £1.1m pa (£24.34 psf.) from high quality tenants.
In addition, since the 31 March 2022 a number of smaller vacant and non-core assets have been sold for £35.1m at a net initial yield of 6.6%, and broadly in line with their 31 December 2021 book value, taking the overall disposals this year to £68.6m.
Stephen Inglis, CEO of London & Scottish Property Investment Management, the Asset Manager of Regional REIT commented: “We are delighted that the company has made further accretive office acquisitions supported by high quality tenants in regions which we have identified as future growth areas. We believe all three acquisitions have considerable potential to drive further value for our shareholders through our active asset management approach and we look forward to providing shareholders with further progress on our ongoing programme of capital recycling in due course.”