UK-based real estate investment trust Regional REIT has sold a majority shareholding stake in its asset manager London & Scottish Property Investment Management for an undisclosed price.
The buyer is ARA Asset Management, a real estate fund management company that manages REITs.
All the staff of London & Scottish Property Investment Management will remain, including CEO Stephen Inglis, who will retain a significant minority interest.
The Board of regional office specialist believes that the transaction will enhance the overall strength and capabilities to the benefit of the company's long-term strategy.
Kevin McGrath, chairman of Regional REIT commented: ‘With the existing dedicated asset management team and the day-to-day operating parameters remaining unchanged, shareholders can be reassured that in the longer term, the Board believes the access to the resources of a large global real estate platform will strengthen the Asset Manager, while preserving its unique regional expertise. The Board looks forward to the continued services and performance that our shareholders have received to date.’
Regional REIT's commercial property in the UK consists mainly of offices in the regional centres outside of the M25 motorway.
The geographically diversified portfolio includes 154 properties with a market valuation of £789.5 mln (€892.5 mln) as of 31 December 2022.
