8th Aug 2018 11:56
LONDON (Alliance News) - Regional REIT Ltd on Wednesday said it completed the sale of a Merrion Way site in Leeds to Unite Students for GBP12.2 million.
The company said it acquired the site back in 2016 as part of the Wing Portfolio alongside the adjacent Arena Point office development. At that time the entire holding, including the office development, was valued at GBP10.5 million.
Regional REIT said the 19 storey Arena Point office building was valued at GBP8.5 million as at the end of 2017.
In addition, the company said it agreed to a joint venture with Unite Students to get planning permission for the Merrion Way site, which has now been granted.
"The hands-on approach we have taken with this site - from identifying its potential use as a student development, lining up a buyer and then starting the planning process - clearly demonstrates how we actively manage the portfolio to create significant shareholder value," said Regional REIT Chief Executive Stephen Inglis.
"When this site opens in 2020 it will take our presence in Leeds to 4,470 beds, with a further development close to University of Leeds and Leeds Beckett University," added Unite Students Property Director Nick Hayes.
Shares in Regional REIT were trading 0.3% higher on Wednesday at 95.30 pence each.
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