17th Aug 2018 07:44
LONDON (Alliance News) - Regional REIT Ltd on Friday said it has agreed to acquire a portfolio of eight office assets for GBP31.4 million.
The real estate investment trust said the acquired offices are located in the UK cities of Hull, High Wycombe, Stockton-on-Tees, Ipswich, Clevedon, Wakefield, Deeside and Lincoln.
The sites are currently let to 24 tenants, Regional REIT said. The company also said it expects those assets to generate a net income of GBP2.8 million per annum, which equates to a net initial yield of 8.7%.
"This acquisition once again highlights our disciplined approach to capital management, with disposal proceeds being promptly redeployed ensuring minimal cash drag," said Stephen Inglis, chief executive of Regional REIT's asset manager London & Scottish Investments Ltd.
"In addition, the portfolio, which presents good asset management opportunities, complements our existing income streams and further diversifies both our tenant base and our exposure to different regions," added Inglis.
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