London-listed commercial property specialist Regional REIT has acquired a UK office portfolio for £27.7 mln (€32 mln) from a British institutional vendor.
The portfolio comprises four multi-let offices located in Redhill, Harefield, Bristol and High Wycombe, representing a total of 131,036 ft2 (12,170 m2) of space. The properties will be managed by London & Scottish Property Investment Management.
'We are pleased to have acquired this institutional quality office portfolio in southern England which is earnings accretive and offers significant potential opportunities for realising valuation uplifts from our asset management initiatives,' said Stephen Inglis, CEO of London & Scottish Property Investment Management.
'We continue to methodically employ our bottom up research approach to each acquisition, as we deploy the recently successfully raised funds. In light of the increasingly attractive pipeline we look forward to updating shareholders of further acquisitions in due course,' Inglis added.
According to Regional REIT, the properties are expected to provide a net income of approximately £2.59 mln per annum from 24 tenants, equating to a net initial yield of 8.7% and anticipated reversionary yield of 9.7%.
The portfolio’s weighted average unexpired lease term is 3.1 years, with 5.4 years to expiry.
The deal is expected to complete by the end of October.
