Regional REIT buys £37.5m portfolio

30th Dec 2015 07:29

(ShareCast News) - Recently-listed commercial property company Regional REIT has exchanged contracts to purchase five assets from a retained client of La Salle Investment Management for a total consideration of £37.5m in an off-market deal.The transaction, which is likely to complete by the end of January 2016, is expected to provide a net income of £3.38m a year, equating to a yield of 8.25%. It will be funded from the company's existing resources.The portfolio consists of four multi-let office buildings in Basingstoke, Leeds, Leicester and Manchester and an industrial business park in Beverley.The assets total circa 703,000 sq. ft and house around 80 tenants including BNP Paribas, Europcar, HSS Hire, Greater Manchester Police, Grosvenor Casinos and JD Wetherspoons. Chief investment officer and property director Stephen Inglis said: "We are delighted to announce the acquisition of this significant portfolio, so soon after our listing in November."As defined at that time, we see huge opportunities in the UK regional commercial property market due to the structural lack of supply for quality office and industrial space. This acquisition marks significant progression in our strategy to take advantage of those opportunities and create sustainable income and strong capital returns for our investors."