Regional REIT has sold an office building in Glasgow at a 26.3% premium to its June valuation.
The REIT sold the 51,775 sq ft Venlaw and Elmbank Gardens office at Charing Cross for £6.25m to a private purchaser with plans to convert the space into student accommodation.
Since the start of the year Regional has sold £26m of of assets at 2% above their most recent valuation.
Offices account for 93% of the £753m portfolio, which spans 150 properties, 1,533 units and 1,021 tenants.
It has a rent roll of £68m against an ERV of £88.7m.
The net loan-to-value ratio is 52.6%, with gross borrowings of £428.5m.
Stephen Inglis, chief executive at London & Scottish Property Investment Management, the REIT’s asset manager, said: “The company has performed robustly in the period, against a backdrop of a volatile market conditions, and continued headwind for the commercial office market.”
He added that Regional remained committed to a programme of asset sales to reduce net borrowings, with a target of 40% LTV.
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