Regional REIT has sold Aspect Court in Sheffield to Sheffield Hallam University for £8.8m.
The transaction was dealt with by London and Scottish Property Investment Management as asset manager on behalf of Regional REIT.
The price reflects an initial yield of 6.6% and and a 24.8% increase on the 31 December 2018 valuation.
Regional REIT acquired Aspect Court at Pond Hill for £6.3m in 2016. It has increased the rental income 16% to £620,000 per annum.
Proceeds from the sale will be deployed towards Regional REIT’s pipeline.
Stephen Inglis, chief executive at LSPIM, said: “Following completion of the business plan for this building, we have agreed a sale to Sheffield Hallam which already occupies the building for academic accommodation.
“Over the past three years under Regional REIT’s management, we have regeared leases, taken back and relet several floors, resulting in increasing the lease length and rental income.”
To send feedback, e-mail emma.rosser@egi.co.uk or tweet @EmmaARosser or @estatesgazette
