Regional REIT acquires two offices for GBP10.2m yielding 10.1 per cent
Regional REIT has completed the acquisition of two office properties in Swansea and Bristol for a total consideration of GBP10.2 million, with a combined net initial yield of 10.1 per cent and a weighted average unexpired lease term (WAULT) to first break of 4.2 years.
Waterside Business Park in Swansea is a two-floor office asset comprising 68,535 sq ft and is set over a 4.1 acre site with ample parking. Being situated less than three miles from Swansea City Centre and train station it also benefits from excellent road and rail links. It is let to The Secretary of State for Communities & Local Government and a large legal practice with offices across Wales.
The current contracted rent of GBP690,000 per annum reflects a net initial yield of 11.7 per cent and a WAULT of 4.5 years.
2410 Aztec West, Bristol, is a two-floor office asset of 22,349 sq ft which is fully let to Liverpool Victoria Friendly Society Ltd, and is set in 1.4 acres with 114 car parking spaces. This site also benefits from both excellent road and rail links, given its location next to the M5 motorway and less than three miles from Bristol Parkway train station.
The current contracted rent of GBP406,000 per annum reflects a net initial yield of 8.2 per cent and a WAULT of 3.6 years.
Stephen Inglis, Chief Executive Officer of London & Scottish Property Investment Management Limited, says: “These two acquisitions from a major UK institutional investor, further diversify our portfolio, deliver attractive yields, and increase our presence in the South West and Wales, these being locations where we see potential for continued strong economic growth and demand. Additionally, both assets present further asset management opportunities in line with our core expertise, to improve income and create accretive capital value for our shareholders.”