Regional sites part of £129m property deal
A £129m property portfolio with sites in the West Midlands 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%.
The portfolio has six sites in the West Midlands totalling 108,000 sq ft. It includes the Swan Centre, an industrial unit in Stratford upon Avon, the Shrewsbury Arms Shopping Mall in Rugeley, Network House in Wolverhampton, and retail warehouses at Trident Retail Park, Birmingham, and Foleshill Road, Coventry.
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%.
