Regional REIT acquires £37.5 million portfolio

RNS Number : 3747K

Regional REIT Limited

30 December 2015

 

December 30 2015

Regional REIT Limited

("Regional REIT" or the "Company")

Regional REIT acquires £37.5 million portfolio

Regional REIT (LSE: RGL),  the recently listed regional commercial property company, today announces it has exchanged contracts  to purchase five regional assets from a retained Client of La Salle Investment Management  for a total consideration of £37.5 million in an off market deal. This is expected to provide a net income of £3.38 million per annum which equates to a yield of 8.25%.and is to 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 houses around 80 tenants including BNP Paribas, Europcar, HSS Hire, Greater Manchester Police, Grosvenor Casinos and JD Wetherspoons.

The portfolio  provides the opportunity to increase value from a solid income basis by way of active asset management to include letting of already refurbished space, refurbishment of unlet space, lease restructuring and securing of alternative uses.

Completion will take place before the end of January 2016.  

Commenting on the acquisition Stephen Inglis, Chief Investment Officer and Property Director of the Asset Manager, 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."

Enquiries:

Regional REIT Limited
Press enquiries through Headland
London & Scottish Investments	Tel: [phone]
Asset manager to the Company
Stephen Inglis
Derek McDonald
Toscafund Asset Management	Tel: [phone]
Investment manager to the Company
Nigel Gliksten
Headland	Tel: [phone]
Financial PR
Francesca Tuckett

 

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