Regional REIT , the Scottish-based real estate investment trust with a range of regional UK office and industrial assets, has acquired a portfolio of six offices, including one undisclosed office in Glasgow, for £25.9 million.
The portfolio comprises six offices in Glasgow, Birmingham, Bristol, Cardiff, Chester and Manchester. The assets total circa 172,442 sq ft and are expected to provide a net income of approximately £2.36 million per annum from 27 tenants; equating to a net initial yield of 8.87% and anticipated reversionary yield of 9.54%.
Regional, launched in November 2015, is managed by London & Scottish Property Investment Management, and Toscafund Asset Management, and its diverse portfolio includes 150 properties, 1,192 units and 874 tenants with a valuation of £718.4 million.
Stephen Inglis, chief executive officer 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.
“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.”
