Regional REIT has snapped up two offices in Swansea and Bristol for £10.2m, with a combined net initial yield of 10.1%.
The Swansea property is a two-floor, 68,535 sq ft office at Waterside Business Park set within a 4.1-acre site. Tenants include the Secretary of State for Local Communities and Local Government.
The current contracted rent of £690,000 per annum reflects a net initial yield of 11.7% and a weighted average unexpired lease term of 4.5 years.
The Bristol property is 2410 Aztec West, a two-floor 22,349 sq ft office let to Liverpool Victoria Friendly Society, set in a 1.4-acre site with 114 car-parking spaces.
The current contracted rent of £406,000 per annum reflects a net initial yield of 8.2% and a weighted average unexpired lease term of 3.6 years.
Stephen Inglis, chief executive of the company’s asset manager London & Scottish Property Investment Management, said: “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 potential for continued strong economic growth and demand.”
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