The portfolio consists of eight offices located in Hull, High Wycombe, Stockton-on-Tees, Ipswich, Clevedon, Wakefield, Deeside and Lincoln. The assets total circa 275,000 sq. ft., let to 24 tenants.
The assets are expected to provide a net income of approximately £2.81 million per annum, which equates to a net initial yield of 8.66%.
Stephen Inglis, Chief Executive Officer of London & Scottish Investments Limited, the Asset Manager to Regional REIT, commented:
“This acquisition once again highlights our disciplined approach to capital management, with disposal proceeds being promptly redeployed ensuring minimal cash drag. The difference between the yields of this portfolio and that of recently disposed assets provided us with a clear arbitrage opportunity and highlights our policy of making income accretive acquisitions.
“In addition, the portfolio, which presents good asset management opportunities, complements our existing income streams and further diversifies both our tenant base and our exposure to different regions.”