One of the UK’s largest real estate investment trusts has today announced the purchase of two office properties as part of a multi-million-pound deal.
Adding to its already diverse portfolio of office and industrial assets, Regional REIT Limited has purchased two further offices in Swansea and Bristol for a total consideration of £10.2m, with a combined net initial yield of 10.1%
Commenting on the purchases, Stephen Inglis, Chief Executive Officer of London & Scottish Property Investment Management Limited, the Asset Manager commented: “These two acquisitions from a major UK institutional investor, further diversify our portfolio, deliver attractive yields, and increase our presence in the South West and Wales, these being locations where we see [the] potential for continued strong economic growth and demand.”
Regional REIT purchased a 68,535 sqft two-floor office in Swansea’s Waterside Business Park, located less than three miles from Swansea City Centre and train station.
The office is currently let to The Secretary of State for Communities & Local Government, and a large legal practise with offices across Wales; rent on the building is £690,000 per annum reflecting a net initial yield of 11.7%.
Regional REIT’s purchase in Bristol saw the group acquire the 22,349 sq ft two-floor office in Aztec West. Currently fully let to the insurance company, Liverpool Victoria Friendly Society, the site has a contracted rent of £406,000 per annum reflecting a net initial yield of 8.2%.