Regional REIT has acquired a major portfolio of 31 high quality, predominately multi-let office assets, from Squarestone Growth LLP, for a consideration price of €275m (£236m). The portfolio comprises 27 office assets providing over 1.6m ft² for 192 tenants; 2 industrial units (120,020ft²) with 3 tenants; a residential asset with 12 tenants (10,672ft²); and a Tim Horton's Drive-Thru restaurant (2,010ft²) for a single tenant.
Stephen Inglis, CEO of London & Scottish Property Investment Management, the Asset Manager of Regional REIT commented: "This large and high-quality acquisition encompasses all the criteria which our experienced Asset Management platform seeks: income growth opportunities coupled with asset management potential for long-term accretive shareholder value. Our Asset Management platform comprises of 62 professionals across a number of disciplines from asset and property management, research, legal, corporate finance to credit control located in Glasgow, Leeds, Manchester and London. They are looking forward to integrating the properties into the current portfolio. This is a major milestone for the Company, the scale and diversity added to the Company's portfolio through this transaction will be accretive for all shareholders. The sourcing of this major portfolio acquisition is a testament to the strength of our network and central position in the regional office market and further builds upon our strategic objective of being the regional office space provider of choice. We look forward to welcoming and working with the new shareholders."
Marius Barnett, representative for the Squarestone LLP members commented: "We are excited to complete this transaction and to partner with Regional REIT in this next chapter. This has been a complex and detailed transaction given the number and geographical spread of the properties. Over the period of the transaction we have established a good working relationship with the Regional REIT team and look forward to a strong long term alliance going forward."