Regional REIT announced on Tuesday that it has closed the purchase of six regional assets in the UK from Kildare Partners in an off-market deal worth £35 mln (€40 mln).
The portfolio consists of five regional offices and one office/distribution property located in Telford, Rotherham, Macclesfield, Dundee, Chelmsford and Bedford. The assets total circa 320,000 sq ft (29,800 m2) let to 12 tenants including NHS Property Services, Swiss Precision Diagnostics, Capgemini, Elior UK Services, Royal Bank of Scotland and The Scottish Ministers.
The assets are expected to provide a total net income of £3.1 mln per annum which equates to a net initial yield of 8.4%.
Stephen Inglis, CEO of London & Scottish Investments, the asset manager commented: 'These six assets, based across a range of geographic locations - all with strong income characteristics, complement our existing portfolio. This transaction once again illustrates our approach of recycling proceeds from our sale programme into replacement assets that sustain the REIT’s diversified income.'