Regional REIT Limited has announced the sale of a significant portion of its industrial portfolio.
In an update to the London Stock Exchange this morning, the UK regional office specialist revealed that it had exchanged contracts with ARA Dunedin for the disposal of a significant industrial property portfolio for £45.0m.
The deal is conditional upon the ARA Dunedin securing the required financing and is expected to occur in August 2021.
The sale is in line with the Regional REIT’s previously stated strategy to exit the industrial sector in preference for higher-yielding regional office investments.
Regional REIT anticipates that the proceeds from the disposal will be recycled into the trusts pipeline of office investments. Following the sale, Regional REIT will have sold 62% of its industrial holdings.
Commenting on the disposal, Stephen Inglis, CEO of London & Scottish Property Investment Management (Regional REIT’s asset manager), said: “The disposal of this industrial portfolio at 18% above the acquisition price enables the recycling of capital into higher-yielding assets, where our bespoke asset management platform can best add shareholder value.
“This [The disposal] will also allow the Company to continue to focus on its clear strategy of offering investors exposure to a geographically diversified portfolio of regional office assets.
We look forward to providing a further update regarding the reinvestment of the proceeds from the sale in due course.”