Regional REIT has bought six office properties for a combined £25.9m.
The REIT, which focuses on regional core and core-plus office and industrial property assets in the UK, has acquired a total 172,442 sq ft across Birmingham, Bristol, Cardiff, Chester, Glasgow and Manchester.
These are expected to provide a net income of around £2.4m per annum from 27 tenants, representing a net initial yield of 8.87% and anticipated reversionary yield of 9.54%. The portfolio’s weighted average unexpired lease term is 4.9 years.
The acquisitions follow a £62.5m capital raising in July, which exceeded a £50m target set in June.
Stephen Inglis, chief executive of London & Scottish Property Investment Management, the company’s asset manager, said: “There continues to be a significant pipeline of attractive near-term investment opportunities across the UK.
“We look forward to announcing further accretive acquisitions as we invest the proceeds from our recent successful equity raise, taking advantage of the strong opportunities that we are seeing in our markets.”
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