Regional REIT has acquired a portfolio of six office assets for a total consideration of €28.4m (£26m). The portfolio comprises six offices located in Birmingham, Bristol, Cardiff, Chester, Glasgow and Manchester. The assets total circa 172,442ft² and are expected to provide a net income of approximately €2.6m (£2.4m) per annum from 27 tenants; equating to a net initial yield of 8.87% and an anticipated reversionary yield of 9.54%. The portfolio's weighted average unexpired lease term is 4.9 years. The acquired tenant profile is deliberately diversified across both industry type and geography, with no crossover to existing Regional REIT tenants.
Stephen Inglis, CEO of London & Scottish Property Investment Management, the Asset Manager, commented: "We are delighted to have secured this portfolio of assets which is both earnings accretive and will further enhance the diversity and scale of our property portfolio. There continues to be a significant pipeline of attractive near-term investment opportunities across the UK, for which Regional REIT can utilise its asset management experience and capital resources to provide sector-leading returns for shareholders. We look forward to announcing further accretive acquisitions as we invest the proceeds from our recent successful equity raise, taking advantage of the strong opportunities that we are seeing in our markets."