REGIONAL REIT SIGNS BRISTOL’S LARGEST OUT-OF-TOWN OFFICE LETTING IN Q4 2018 FOR SECOND QUARTER RUNNING.
London & Scottish Investments Limited (“LSI”), Asset Manager to Regional REIT Limited (“the Group”), the UK regional office and industrial property focused real estate investment trust, today announces that it secured Bristol’s largest letting in the out of town office market for the second quarter running in 2018.
The terms of the lease, agreed in December, see the Ministry of Defence take 32,000 sq. ft. of office space at 800 Aztec West, for a ten-year period. This represented Bristol’s largest out-of-town office letting in 2018, and follows the lease agreed with Edvance SAS, which was the largest out-of-town letting in Bristol agreed in Q3 of 2018. These lettings result in 800 Aztec West being 87% let within 5 months of completing an extensive refurbishment. The building was acquired by Regional REIT in January 2016.
Stephen Inglis, Chief Executive Officer of London & Scottish Investments Limited, the Asset Manager of Regional REIT Limited commented:
“This is an important letting for the Group, as we took the rare decision to speculatively refurbish the property due to the intense demand for quality office space in Bristol from both tenants and investors. The city has emerged as a centre for many key growth sectors on account of the region’s great transport links and the formation of Government regional hubs. Having seen strong interest in Aztec West, we’re delighted to have secured two high-quality tenants.”
Regional REIT has also agreed to purchase a pair of office pavilions, which adjoins its existing ownership, at Clydebank Business Park for £1.8m. The buildings, comprising of 28,000 sq. ft. of office space, are both leased to Clydesdale Bank until February 2024. The assets are expected to provide a net income of approximately £320k per annum, which equates to a net initial yield of 16.7%. This completes Regional REIT’s ownership of all of Mariner Court.