12th Jul 2021 11:55
Regional REIT Ltd - UK-focused real estate investment trust - Sells Arena Point property in Leeds, England, for GBP10.7 million. Says the sale represents an uplift of 16% against its end-2020 valuation. Notes the property has generated profit after all costs of GBP9.3 million, resulting in a geared internal rate of return of 25%. Says the purchaser intends to demolish the 19-storey office block to make way for a 43-storey tower, providing accommodation for 705 students.
Follows the recent sale of industrial and business park for GBP8.6 million at a 37% uplift on acquisition price. Adds that proceeds from the disposals will fund a growing pipeline of higher yielding office opportunities to further diversity Regional REIT's portfolio both geographically and by income streams.
Asset Manager Stephen Inglis says: "We have a strong and growing pipeline of attractive new acquisition opportunities and intend to reinvest the proceeds of this sale into other mispriced office assets offering similar high returns in terms of yield and capital growth."
Current stock price: 92.12 pence, up 1.8% on Monday morning
Year-to-date change: up 12%
By Scarlett Butler; [email protected]
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