Regional REIT has bought Conygar Investment Company’s portfolio of UK regional assets for £129m.
The portfolio’s 31 mixed-use assets comprise, by value, 60% offices and 21% retail and retail warehousing. The remainder is a combination of industrial and leisure assets.
When the deal completes on 24 March, the portfolio will have a net asset value of £28m and Regional REIT will issue 26.3m ordinary shares at 108p per share to match that.
Regional REIT also acquired Conygar ZDP, a wholly owned subsidiary of Conygar, in the purchase.
The properties represent the bulk of Conygar’s portfolio, which had £152m in net assets on 30 September.
Stephen Inglis, chief investment officer of Regional REIT’s asset manager London & Scottish Investments, said: “The deal is complementary to the existing asset base of Regional REIT and aligns with the expertise and experience of the asset manager.
“There are the benefits of portfolio scale and coverage, for recycling capital and flexibility of the asset base and for diversifying risk. The spread of properties and tenants supports the group’s income base.”
John Rodgers, partner at Gerald Eve, which advised Regional REIT said:
“This acquisition is both accretive and complementary to existing holdings, and brings additional scale, diversity and income performance to the wider portfolio. It also further underlines Gerald Eve’s position as a growing force in corporate finance and investment advisory, building on the expansion of the team last year and involvement in a number of recent high-profile transactions.”
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