Real estate investor secures several office assets in £26m acquisition

Real estate investment specialist Regional REIT has acquired a portfolio of six office assets for a total consideration of £25.9m.

The portfolio comprises six offices located in Birmingham, Bristol, Cardiff, Chester, Glasgow and Manchester.

The assets total around 172,442 sq ft and are expected to provide a net income of approximately £2.36m per annum from 27 tenant. This is said to equate to a net initial yield of 8.87 per cent and anticipated reversionary yield of 9.54 per cent.

Stephen Inglis, CEO of London & Scottish Property Investment Management, said: “We are delighted to have secured this portfolio of assets, which is both earnings accretive and will further enhance the diversity and scale of our property portfolio.

“There continues to be a significant pipeline of attractive near-term investment opportunities across the UK, for which Regional REIT can utilise its asset management experience and capital resources to provide sector-leading returns for shareholders.”

The portfolio’s weighted average unexpired lease term is 4.9 years, while the acquired tenant profile is deliberately diversified across both industry type and geography, with no crossover to existing Regional REIT tenants.

Stephen added: “We look forward to announcing further accretive acquisitions as we invest the proceeds from our recent successful equity raise, taking advantage of the strong opportunities that we are seeing in our markets.”

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