The Regional Office Property Unit Trust (ROPUT), advised and managed by Schroder Real Estate, has exchanged contracts to acquire two properties in the UK.
ROPUT has acquired The Senate (pictured) in Exeter and London Court in Reigate for a combined £27.2 mln (€32 mln), reflecting a net initial yield of 7.1%.
The Senate is a multi-let 6,410 m2 office building in Exeter city centre. Dating from 2003, the property is built over ground and four upper floors and is fully let to tenants including Trowers & Hamlins, Reuters and Arbuthnot Latham & Co. The price paid was £15.7 mln which reflects a net initial yield of 7.4%.
London Court is a multi-let 3,250 m2 office building constructed in 2009. It is located within a short walking distance of both Reigate town centre and Reigate mainline rail station. The property is built over ground and three upper floors and is fully let to four tenants including Tesco Underwriting and Hyundai Capital UK. The price paid was £11.5 mln which reflects a net initial yield of 6.8%.
'The Senate and London Court are modern, well built buildings let to good covenants in locations that have very little grade A office supply and little to no speculative development in the pipeline,' said Tom Newman, investment manager at Schroder Real Estate.
ROPUT targets under-supplied regional office markets in the UK and The Senate and London Court are its fifth and sixth acquisitions since it was launched in 2016. The fund has a further £130 mln of funding available for immediate investment, Newman said.
CBRE and Doherty Baines acted for Schroder Real Estate.
