Regional REIT (LSE: RGL), the regional real estate investment specialist focused on building a diverse portfolio of income producing regional UK core and core plus office and industrial property assets, is delighted to announce today that it has exchanged contracts to acquire a portfolio of four office assets for a total consideration of £27.7million from a UK institutional vendor, with completion expected by the end of October.
The portfolio comprises four multi-let offices located in Redhill, Harefield, Bristol and High Wycombe. The assets total circa 131,036sq. ft. and are expected to provide a net income of approximately £2.59 million 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 and 5.4 years to expiry.
Stephen Inglis, CEO of London & Scottish Property Investment Management, the Asset Manager, commented:
"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.
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."