31st Dec 2019 08:18
(Alliance News) - Regional REIT Ltd on Tuesday said it has purchased an office asset in Scotland's Edinburgh Park for the total amount of GBP10.3 million, reflecting a net initial yield of 8.0%.
The office is made up of 43,676 square feet over three floors. It commands a current contracted rent of GBP880,000 per annum with 3.75 years to lease expiry.
The space is currently 100% let to aviation business John Menzies PLC.
"This is a prime asset in the best position on the internationally-renowned Edinburgh Business Park. 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," said Stephen Inglis, chief executive of London and Scottish Property Investment Management.
London and Scottish Property Investment Management serves as Regional REIT's asset manager.
Shares in the real estate investment firm were up 1.1% at 114.60 pence on Tuesday morning in London.
By Ife Taiwo; [email protected]
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