North West assets picked up in £236m office deal
Regional REIT has acquired properties in Manchester, Liverpool, St Helens and Warrington totalling 345,000 sq ft from Squarestone Growth.
North West assets acquired
- Manchester Green, Wythenshawe – 106,000 sq ft
- The Lighthouse, Salford Quays – 64,000 sq ft
- The Royals, Altrincham Road – 53,000 sq ft
- 5 Temple Square, Liverpool – 40,000 sq ft
- Centre Park, Firecrest Court, Warrington – 36,000 sq ft
- Mere Grange, St Helens – 45,000 sq ft
In total, the deal sees the REIT purchase 27 regional offices and two industrial units across England and Scotland, as well as a residential property in Bracknell and a Tim Hortons drive-thru in Paisley.
The highest valued single asset is Capitol Park in Leeds at £22.2m.
The contracted annual rent roll for the 1.7m sq ft portfolio is £21.9m. This corresponds to a net initial yield of 7.8%, expected to rise to 11%, according to London and Scottish Property Investment Management, Regional REIT’s asset manager.
Of the REIT’s portfolio, which was valued at £732.4m at the end of 2020, 83% is made up of offices.
The acquisition of the Squarestone portfolio, combined with the recent disposal of 800,000 sq ft of industrial assets, significantly increases the REIT’s regional office focus.
The non-office assets within the Squarestone deal are to be sold on by Regional REIT as part of LSPIM’s ongoing disposal programme for non-core assets.
Squarestone was advised by CBRE. Regional REIT was advised by Gerald Eve and by Cushman & Wakefield.