Regional REIT, the recently listed regional commercial property company, has exchanged contracts to buy the Rainbow Portfolio from Northwood Investors for £80m – a net initial yield of 8.2%.
The portfolio comprises 12 assets – five offices and seven industrial sites – totalling 1.2m sq ft in cities including Bristol, Manchester, Cardiff and Sheffield.
Tenants include Clerical Medical, Equitable Life, Invensys, Vanguard Logistics, Schenker, Veolia and FMC Technologies.
Approximately 45% of the income is derived from the industrial assets, with offices accounting for the remaining 55%.
Since listing in November 2015, Regional REIT has acquired £120.5m of assets, bringing its total assets to more than £500m.
It has also announced a number of sales, including Churchill Plaza in Basingstoke, Hampshire, which was sold for £12m, after being purchased in August 2014 for £7.5m.
Office buildings in Kirkcaldy and Glasgow and five retail assets have also recently been sold for a total of £7.2m.
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