Regional REIT has exchanged contracts to acquire a portfolio of four office assets for £27.7m.
The portfolio, sold by an unnamed UK institutional vendor, comprises four multi-let offices in Redhill, Harefield, Bristol and High Wycombe.
The assets total 131,036 sq ft and are expected to provide a net income of approximately £2.59m per annum from 24 tenants, equating to a net initial yield of 8.7% and an anticipated reversionary yield of 9.7%.
The portfolio’s weighted average unexpired lease term is 3.1 years with 5.4 years to expiry.
Stephen Inglis, chief executive of London & Scottish Property Investment Management, the asset manager, said: “We are pleased to have acquired this institutional quality office portfolio in southern England which is earnings-accretive and offers significant potential opportunities for realising valuation uplifts from our asset management initiatives.”
Gerald Eve acted for Regional REIT.
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