Regional REIT has sold an industrial portfolio to ARA Dunedin for £45m. The price reflects a net initial yield of 6.75% and is 7.5% above the December valuation.
The 800,000 sq ft portfolio comprises seven industrial properties in Bromborough, Erith, Nottingham, Scunthorpe, Telford, Winsford and Wisbech.
The sale is in line with Regional’s plan to exit the industrial sector in preference for higher yielding regional office investments. So far it has sold 62% of its industrial holdings.
Stephen Inglis, CEO of Regional’s asset manager, London & Scottish Property Investment Management, 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 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.”
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