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Regional REIT buys portfolio of four offices for ?27.7m
18th Oct 2019 11:47
(Sharecast News) - Regional REIT has exchanged contracts to acquire a portfolio of four office assets for a total consideration of £27.7m from a UK institutional vendor, it announced on Friday, with completion expected by the end of October.
The London-listed real estate investment trust said the portfolio comprised four multi-let offices located in Redhill, Harefield, Bristol and High Wycombe.
It said the assets totalled around 131,036 square feet, and were expected to provide a net income of about £2.59m per annum from 24 tenants, equating to a net initial yield of 8.7% and anticipated reversionary yield of 9.7%.
The portfolio's weighted average unexpired lease term was 3.1 years, with 5.4 years to expiry.
"We are pleased to have acquired this institutional quality office portfolio in southern England which is earnings accretive and offers significant potential opportunities for realising valuation uplifts from our asset management initiatives," said Stephen Inglis, chief executive officer of Regional REIT's asset manager, London & Scottish Property Investment Management.
"We continue to methodically employ our bottom up research approach to each acquisition, as we deploy the recently successfully raised funds. In light of the increasingly attractive pipeline we look forward to updating shareholders of further acquisitions in due course."
The London-listed real estate investment trust said the portfolio comprised four multi-let offices located in Redhill, Harefield, Bristol and High Wycombe.
It said the assets totalled around 131,036 square feet, and were expected to provide a net income of about £2.59m per annum from 24 tenants, equating to a net initial yield of 8.7% and anticipated reversionary yield of 9.7%.
The portfolio's weighted average unexpired lease term was 3.1 years, with 5.4 years to expiry.
"We are pleased to have acquired this institutional quality office portfolio in southern England which is earnings accretive and offers significant potential opportunities for realising valuation uplifts from our asset management initiatives," said Stephen Inglis, chief executive officer of Regional REIT's asset manager, London & Scottish Property Investment Management.
"We continue to methodically employ our bottom up research approach to each acquisition, as we deploy the recently successfully raised funds. In light of the increasingly attractive pipeline we look forward to updating shareholders of further acquisitions in due course."