Regional REIT has purchased Beeston Business Park in Nottingham for £16.4 million.
The out-of-town site comprises 220,274 sq. ft. of internal space, including a flagship multi-let two floor office building on a total site of 26.5 acres.
The business park in Nottingham benefits from excellent transport links being adjacent to the Beeston Train Station which has direct connectivity to London St. Pancras International, and is located four miles from city centre. Additionally, East Midlands Airport is located only 12 miles to the south west of the business park.
The rent of circa £1.5m per annum, reflects a net initial yield of 10.1%, with a weighted average unexpired lease term of 11.1 years to expiry and 7.8 years to the first break.
The tenants include Metropolitan Housing Trust, Worldwide Clinical Trials Ltd., and Heart Internet Ltd. (trading as GoDaddy).
“We are delighted that the Company has made a further accretive acquisition, which has been partially funded by recycled sales proceeds. To acquire such a high quality and income producing asset management opportunity is quite an achievement in the current market environment. The yield of 10.1% reflects a substantial uplift against the 4.8% yield which was generated from Juniper Park, Basildon, recently sold for £32.7m,” said Stephen Inglis, Chief Executive Officer of London & Scottish Property Investment Management Limited, the Asset Manager.
”The business park is well positioned in one of the UK’s top 15 cities with excellent transport links and it also increases our regional diversification. In addition, the Acquisition offers the potential execution of a number of near term asset management initiatives. These attributes make it a good fit with our specialised asset management platform and offers both short and medium term income and capital growth opportunities.”