Regional REIT has exchanged contracts to purchase five regional assets from a client of La Salle Investment Management for 拢37.5 mln (鈧�51 mln).
Regional REIT has exchanged contracts to purchase five regional assets from a client of La Salle Investment Management for 拢37.5 mln (鈧�51 mln).
The off-market deal is expected to provide a net income of 拢3.38 mln per annum which equates to a yield of 8.25%. Regional REIT will fund the acquisition from its 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 65,310 m2 and houses around 80 tenants including BNP Paribas, Europcar, HSS Hire, Greater Manchester Police, Grosvenor Casinos and JD Wetherspoons.
Completion is expected to take place before the end of January 2016.
'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,' said Stephen Inglis, chief investment officer at Regional REIT.
