Regional sites part of £129m property deal
A £129m property portfolio with sites in the North West has been bought by investor Regional REIT.
The group, which focuses on office and industrial property outside London, has bought 31 mixed-use assets from Conygar. The deal will be part-funded by Regional REIT issuing shares worth £28.0m to Conygar.
The portfolio has 1.28m sq ft of space across 153 units. Offices account for 60%, retail and retail warehousing 21%, industrial 12%, and leisure 7%.
It includes Hewlett Packard’s 50,549 sq ft building at Birchwood Park and the neighbouring 26,194 sq ft office let to Dassault Systems. The 41,619 sq ft Wilkinson store in St Helens town centre is also part of the deal.
Stephen Inglis, group property director of London & Scottish Investments, which is the asset manager of Regional REIT, said: “This is a quality investment portfolio secured ‘off market’, offering substantial asset management opportunities and income growth potential.
“The spread of properties and tenants further underpins the strength of the group’s income base.”
Occupancy across the portfolio is 82.9%, by rental value, with the deal giving a net initial yield of 7.0%.
