LONDON, UK: Regional REIT has completed the attractive acquisition of two office properties in Swansea and Bristol for a total consideration of £10.2m, with a combined net initial yield of 10.1% and a weighted average unexpired lease term (WAULT) to first break of 4.2years.
Waterside Business Park, Swansea:
The two-floor office asset comprises 68,535 sq. ft. and is set over a 4.1 acre site with ample parking. Being situated less than three miles from Swansea City Centre and train station it also benefits from excellent road and rail links. It is let to The Secretary of State for Communities & Local Government and a large legal practice with offices across Wales.
The current contracted rent of £690,000 per annum reflects a net initial yield of 11.7% and a WAULT of 4.5years.
2410 Aztec West, Bristol:
The two-floor office asset (22,349 sq.ft.) is fully let to Liverpool Victoria Friendly Society Ltd., and is set in 1.4 acres with 114 car parking spaces. This site also benefits from both excellent road and rail links, given its location next to the M5 motorway and less than three miles from Bristol Parkway train station.
The current contracted rent of £406,000 per annum reflects a net initial yield of 8.2% and a WAULT of 3.6years.
Stephen Inglis, Chief Executive Officer of London & Scottish Property Investment Management Limited, the Asset Manager commented: “These two acquisitions from a major UK institutional investor, further diversify our portfolio, deliver attractive yields, and increase our presence in the South West and Wales, these being locations where we see potential for continued strong economic growth and demand. Additionally, both assets present further asset management opportunities in line with our core expertise, to improve income and create accretive capital value for our shareholders.”
Regional REIT Limited and its subsidiaries is a United Kingdom (UK) based real estate investment trust that launched in November 2015. It is managed by London & Scottish Property Investment Management Limited, the Asset Manager, and Toscafund Asset Management LLP, the Investment Manager.
Regional REIT’s commercial property portfolio is comprised wholly of income producing UK assets and comprises, predominantly, offices and industrial units located in the regional centres outside of the M25 motorway. The portfolio is highly diversified, with 151 properties as at 30 June 2020, with a valuation of £742.3m.
Regional REIT pursues its investment objective by investing in, actively managing and disposing of regional core and core plus property assets. It aims to deliver an attractive total return to its Shareholders, targeting greater than 10% per annum, with a strong focus on income supported by additional capital growth prospects.
The Company’s shares were admitted to the Official List of the UK’s Financial Conduct Authority and to trading on the London Stock Exchange on 6 November 2015.
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