Commercial property company, Regional Reit, has purchased a £37.5m portfolio in an off market deal.
The acquisition of five regional assets from a client of La Salle Investment Management is expected to rake in a net income of £3.38m a year, which Regional Reit bosses said equates to a yield of 8.25 per cent.
Four multi-let office buildings in Basingstoke, Leeds, Leicester and Manchester and an industrial business park in Beverley are included in the portfolio.
The assets total around 703,000 square foot, and houses around 80 tenants, including BNP Paribas, Europcar, HSS Hire, Greater Manchester Police, Grosvenor Casinos and JD Wetherspoons.
The deal will be funded by Regional Reit’s existing resources.
Stephen Inglis, chief investment officer and property director of Regional Reit, said: “We are delighted to announce the acquisition of this significant portfolio, so soon after our listing in November.
“As defined at that time, we see huge opportunities in the UK regional commercial property market due to the structural lack of supply for quality office and industrial space.
“This acquisition marks significant progression in our strategy to take advantage of those opportunities and create sustainable income and strong capital returns for our investors.”
The portfolio sets out to provide increased value from a solid income basis through active asset management.
It includes letting already refurbished space, refurbishment of unlet space, lease restructuring and securing of alternative uses.
Completion of the deal will take place before the end of January 2016.
katherine.denham@ft.com
