9th Feb 2016 09:57
LONDON (Alliance News) - Regional commercial property investor Regional REIT Ltd on Tuesday said it had bought the Rainbow Portfolio from Northwood Investors for GBP80.0 million.
Regional REIT said the portfolio was made up of 12 assets totalling 1.2 million square feet, five of which are offices and seven industrial sites, geographically spread throughout the UK in major regional urban areas including Bristol, Manchester, Cardiff and Sheffield. The property investor said the portfolio produces a net yield of 8.2% at a capital rate of GBP70 per square foot.
Regional REIT said 45% of the income comes from the industrial assets, with the other 55% from the offices. It said 86% is income from assets in England, 8.0% in Scotland and 6.0% in Wales.
Elsewhere, the company announced a number of sales which it said were "consistent with the company's policy of selling where real value had been created and reducing Regional REIT's risk".
It said it had sold the Churchill Plaza in Basingstoke for GBP12.0 million, having acquired the property in August 2014 for GBP7.5 million, along with five retail assets for a total of GBP4.8 million, up from the December valuation.
Regional REIT said it had also sold an office building in Kirkcaldy for GBP900,000, 50% ahead of the June 2015 valuation, and an office building in Glasgow for GBP1.5 million, in line with its valuation.
Following completion of the transactions, Regional REIT said its investment portfolio will amount to GBP511.0 million, up from GBP405.4 million at the end of 2014.
"The acquisition of the Rainbow portfolio is another step in the evolution of Regional REIT taking assets to over GBP500.0 million. We remain acquisitive as we continue to re-balance the portfolio and re-invest proceeds from the sale of non-core holdings in quality income and capital enhancing assets to create further value for our investors," said Stephen Inglis, chief investment officer and property director of London & Scottish Investments, the asset manager to Regional REIT.
Regional REIT shares were down 0.3% at 101.75 pence on Tuesday morning.
By Hannah Boland; [email protected]; @Hannaheboland
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