2nd May 2018 12:21
LONDON (Alliance News) - Regional REIT Ltd on Wednesday said that it exchanged contracts to purchase six regional assets from private equity fund Kildare Partners for GBP35.2 million in an off-market transaction.
The investment company said that portfolio consists of five regional offices and one distribution property located in Telford, Rotherham, Macclesfield, Dundee, Chelmsford and Bedford.
Regional REIT expects the investment to provide an income of about GBP3.1 million per year which equates to a yield of 8.4%. The deal was funded from proceeds received from a previously announced share placing.
In early December last year, the company raised up to GBP100.0 million through a placing, open offer, and offer for subscription, all at a price of 101.00 pence per share to strengthen its balance sheet for portfolio buys.
Shares in Regional REIT were flat at 100.00 pence per share on Wednesday.
"The acquisition of this portfolio provides us with another set of complimentary income streams and further diversifies our tenant base," said Chief Executive Stephen Inglis.
"This off-market acquisition complements our existing portfolio and strengthens our offer in several regional markets where we see good occupational demand," Iglis added.
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Regional Reit