Regional office specialist Regional REIT has acquired a portfolio of 31 predominately multi-let office assets in the UK for a total of £236 mln (€275 mln) from Squarestone Growth.
Comprising 27 office assets in total, the portfolio provides over 1.6 million ft2 (148,650 m2) of space for some 192 tenants. There are also two industrial units with three tenants, a residential asset with 12 tenants and a Tim Horton's Drive-Thru restaurant occupied by a single tenant.
The deal is being financed by the issuance of new company shares to the tune of £83.1 mln, plus £76.7 mln of existing cash resources and additional debt of £76.2 mln.
'The board's expectation is for the acquisition to be earnings accretive, with significant additional value being achieved over the coming years from the company's active management initiatives,' Regional REIT said.
Stephen Inglis, CEO of London & Scottish Property Investment Management, the asset manager of Regional REIT, commented: 'This large and high-quality acquisition encompasses all the criteria which our experienced asset management platform seeks: income growth opportunities coupled with asset management potential for long-term accretive shareholder value.'
Marius Barnett, representative for the Squarestone LLP members said: 'We are excited to complete this transaction and to partner with Regional REIT in this next chapter. This has been a complex and detailed transaction given the number and geographical spread of the properties.
'Over the period of the transaction we have established a good working relationship with the Regional REIT team and look forward to a strong long term alliance going forward.'
