Deeside asset sold in £31.4m portfolio deal
Regional REIT, which is asset-managed by London & Scottish Investments, has exchanged and completed on contracts to buy eight assets for £31.4m, including the Parkway Business Centre in Deeside.
The portfolio, acquired from M7 Real Estate, consists of eight offices in Hull, High Wycombe, Stockton-on-Tees, Ipswich, Clevedon, Wakefield and Lincoln as well as Deeside, where Parkway was the only mixed office and industrial scheme in a regional roster otherwise dominated by industrial units.
The office accommodation at Parkway comprises 18,700 sq ft of space across a network of two-storey blocks, while the industrial totals close to 32,000 sq ft.
Together, the assets total around 275,000 sq ft and are let to 24 tenants. They are expected to provide a net income of approximately £2.8m per year, equating to a net initial yield of 8.66%.
Stephen Inglis, chief executive of London & Scottish Investments, said: “This acquisition once again highlights our disciplined approach to capital management, with disposal proceeds being promptly redeployed ensuring minimal cash drag.
“The difference between the yields of this portfolio and that of recently disposed assets provided us with a clear arbitrage opportunity and highlights our policy of making income accretive acquisitions.
“In addition, the portfolio, which presents good asset management opportunities, complements our existing income streams and further diversifies both our tenant base and our exposure to different regions.”