Newly listed commercial property company buys sites in Leeds and Beverley

A view of the skyline in Leeds city centre. The city has attracted interest from a commercial property firm.
A view of the skyline in Leeds city centre. The city has attracted interest from a commercial property firm.
0
Have your say

REGIONAL Reit, the recently listed regional commercial property company, has bought a £37.5m portfolio, including properties in Yorkshire.

The company has exchanged contracts to purchase five
regional assets from a retained client of La Salle Investment
Management in an off market deal.

In a statement, Regional REIT said: “This is expected to provide a net income of £3.38m per annum which equates to a yield of 8.25 per cent, and is to be funded from the company’s existing resources.

“The portfolio consists of four multi-let office buildings in Basingstoke, Leeds, Leicester and Manchester and an industrial business park in Beverley.

“The assets total around 703,000 sq ft and house around 80 tenants including BNP Paribas, Europcar, HSS Hire, Greater Manchester Police, Grosvenor Casinos and JD Wetherspoons.

“The portfolio provides the opportunity to increase value from a solid income basis by way of active asset management, to include letting of already
refurbished space, refurbishment of unlet space, lease restructuring and securing of alternative uses.”

Completion is expected to take place before the end of January 2016.

Commenting on the acquisition, Stephen Inglis, the chief investment officer and property director of the asset manager, 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.”

REITs are listed firms with special tax status that manage properties on behalf of investors.