Regional REIT has bought a six-asset portfolio from Ellis Short’s Kildare Partners for £35.2m.
The price paid for the off-market deal reflects a yield of 8.4%.
The portfolio consists of five regional offices and one office/distribution property located in Telford, Rotherham, Macclesfield, Dundee, Chelmsford and Bedford.
The assets total around 320,000 sq ft and are let to 12 tenants including NHS Property Services, Swiss Precision Diagnostics, Capgemini, Elior UK Services, Royal Bank of Scotland and the Scottish Ministers.
Completion is due towards the end of June.
Stephen Inglis, chief executive of London & Scottish Investments, the asset manager of Regional REIT, said: “The acquisition of this portfolio provides us with another set of complimentary income streams and further diversifies our tenant base.
“This off-market acquisition complements our existing portfolio and strengthens our offer in several regional markets where we see good occupational demand.”
Leo Zielinski, partner at Gerald Eve, said “We are pleased to have secured this portfolio for Regional REIT which is complementary to existing holdings, offering significant asset management opportunities and income growth potential.
“This is the third off market portfolio acquisition that we have advised Regional REIT on over the last 12 months bringing the total to over £200m of deals– underlining Gerald Eve’s position as a leading advisor in portfolio investment.”
To send feedback, e-mail david.hatcher@egi.co.uk or tweet @hatcherdavid or @estatesgazette
