Regional REIT, the recently listed regional commercial property company, has exchanged contracts to buy the Rainbow Portfolio for £80m from Northwood Investors.
The portfolio comprises 12 assets, five offices and seven industrial sites totalling 1.15m sq.ft. and geographically spread throughout the UK in major regional urban areas including Bristol, Manchester, Cardiff, Sheffield and the West Midlands. Tenants include Clerical Medical, Equitable Life, Invensys, Vanguard Logistics, Schenker, Veolia and FMC Technologies.
Approximately 45 per cent of the income is derived from the industrial assets with offices accounting for the remaining 55 per cent, the company said in a statement.
The company has also announced a number of sales, including Churchill Plaza, in Basingstoke which has sold for £12m, the property having been acquired in August 2014 for £7.5m.
Stephen Inglis, chief investment officer and property director of the Asset Manager, said: “The acquisition of the Rainbow portfolio is another step in the evolution of Regional REIT taking assets to over £500m. Since listing in November 2015 we have acquired £120.5m of assets, offering a good balance of income and asset management opportunities. We remain acquisitive as we continue to re-balance the portfolio and re-invest proceeds from the sale of non-core holdings in quality income and capital enhancing assets to create further value for our investors.”