A newly listed regional commercial property, Regional REIT, has started to build their portfolio with their acquisition of properties amounting to £37.5m including properties in Yorkshire, Yorkshire Post reports.
In an off market deal, the company plans to purchase five regional assets from a retained client of La Salle Investment Management.
Regional REIT, in a statement, said: "This is expected to provide a net income of £3.38m per annum which equates to a yield of 8.25 per cent, and is to be funded from the company's existing resources.
"The portfolio consists of four multi-let office buildings in Basingstoke, Leeds, Leicester and Manchester and an industrial business park in Beverley.
"The assets total around 703,000 sq ft and house around 80 tenants including BNP Paribas, Europcar, HSS Hire, Greater Manchester Police, Grosvenor Casinos and JD Wetherspoons.
"The portfolio provides the opportunity to increase value from a solid income basis by way of active asset management, to include letting of already refurbished space, refurbishment of unlet space, lease restructuring and securing of alternative uses."
Projects and construction are expected to be completed before the end of January 2016.
Stephen Inglis, the chief investment officer and property director of the asset manager, commented on the series of acquisition: "We are delighted to announce the acquisition of this significant portfolio, so soon after our listing in November.
"As defined at that time, we see huge opportunities in the UK regional commercial property market due to the structural lack of supply for quality office and industrial space. This acquisition marks significant progression in our strategy to take advantage of those opportunities and create sustainable income and strong capital returns for our investors."
As defined, a real estate investment trust (REIT) is a company that owns, and in most cases, operates income-producing real estate. REITs own many types of commercial real estate, ranging from office and apartment buildings to warehouses, hospitals, shopping centers, hotels and even timberlands. Some REITs also engage in financing real estate.
