Regional REIT has acquired a valuable office asset in one of Scotland's premier business parks for a total consideration of c.€12m (£10.3m). The office asset comprises 43,676ft² over 3 floors, currently 100% let to John Menzies plc, international aviation business and one of Scotland's largest companies. The current contracted rent of c.€1m (£880,000) per annum provides a net initial yield of 8.0% with 3.75 years to lease expiry. The office asset is in Edinburgh Park, firmly established as one of Scotland's key business parks providing more than 1 million ft² of office accommodation to over 30 occupiers with excellent connectivity to both Edinburgh city centre and Edinburgh airport.
Stephen Inglis, CEO of London and Scottish Property Investment Management, the Asset Manager, commented: "This is a prime asset in the best position on the internationally renowned Edinburgh Business Park. It is let to a quality tenant and we have been able to take advantage of uncertainty in the UK political and economic outlook at the time of agreeing to this deal. This has allowed us to acquire an asset on Park dominated by large institutional investors and a market that was simply not previously within our reach given our investment criteria and returns requirements. This acquisition demonstrates our ability to secure deals on favourable terms and offers us an accretive asset management opportunity in the medium term to optimise value for our shareholders. Further, we are delighted to incorporate another major letting to a significant international blue-chip tenant within our portfolio."
