Regional REIT has paid £26.5 million for three office assets in Yorkshire.
The REIT made three separate investments in Sheffield city centre, Thorpe Business Park, Leeds, and Leeds city centre for £8.5m, £8.6m, and £9.4m respectively, reflecting net initial yields of 9.2%, 7.1% and 7.7%, with an overall blended net initial yield of 8.0%.
Stephen Inglis, CEO of London & Scottish Property Investment Management, the Asset Manager of Regional REIT commented: “We are delighted that following the Company’s announcement on 18 May of a £48.2m acquisition yielding 8.7%, Regional REIT has made further attractive acquisitions taking advantage of compelling market conditions for our strategic focus on UK regional offices.
”The three acquired assets announced today are high quality and well located buildings, purchased at a strong accretive blended yield of 8.0%. All three assets are supported by high quality tenants in a growth region of the UK that we are keen to increase the portfolio’s exposure to. The assets also provide us with compelling opportunities to drive further value through asset management activity, whilst delivering attractive income streams,” he added.
The company acquired;
1 North Bank, Sheffield (totalling 58,893 sq. ft.)
· Five floors of recently refurbished Grade A office space; BREEAM ‘Very Good’; EPC C with a clear plan to enhance the ratings further for minimal capital expenditure
· 98.4% occupancy (by ERV); major tenants include Social Work England and XLN Telecom Ltd.
· Located to the north of the city centre, with excellent rail and road links and 70 car parking spaces
· Contracted rent of £0.8m (£14.09 \ sq. ft.); WAULT to first break of 2.0 years and 4.5 years to expiry
Thorpe Park, Leeds (totalling 31,101 sq. ft.)
· Two floors of recently fully refurbished office space; EPC A first floor and EPC B ground floor
· 100% occupancy (by ERV); major tenants include Homeserve Membership Ltd. and SpaMedica Ltd.
· Excellent road links with 154 car parking spaces; Thorpe Park will soon be able to boast its own railway station
· Contracted rent of £0.7m (£21.21 \ sq. ft.); WAULT to first break of 3.9 years and 6.7 years to expiry
Albion Street, Leeds (totalling 34,196 sq. ft.)
· Six floors of recently fully refurbished well specified office space and retail on the ground floor; EPCs range from B to D with a clear plan to enhance the ratings further for minimal capital expenditure
· 99.0% occupancy (by ERV); major tenants include Specsavers, Akari Care Ltd., and The National Association of Citizens Advice Bureaux
· Located in the heart of Leeds city centre, with 14 car parking spaces, being rich in amenities and extremely well served by transport connections
· Contracted rent of £0.8m (£22.55 \ sq. ft.); WAULT to first break of 1.2 years and 2.5 years to expiry