South Yorkshire property snapped up by Regional REIT

Regional REIT, the UK regional office and industrial property focused REIT, has purchased six regional assets from Kildare Partners for £35.2m in an off market transaction.

This includes a Rotherham asset, understood to be occupied by computer consultancy firm Capgemini, based in Rawmarsh.

All of the acquisitions are expected to provide a net income of £3.1m per annum, which equates to a net initial yield of 8.4%. 

The portfolio consists of five regional offices and one office/distribution property located in Telford, Rotherham, Macclesfield, Dundee, Chelmsford and Bedford. The assets total 320,000 sq ft, let to 12 tenants including NHS Property Services, Swiss Precision Diagnostics, Capgemini, Elior UK Services, Royal Bank of Scotland and The Scottish Ministers.

Completion will take place towards the end of June 2018.

Stephen Inglis, chief executive of London & Scottish Investments Limited, the asset manager, said: “The acquisition of this portfolio provides us with another set of complimentary income streams and further diversifies our tenant base. This off market acquisition complements our existing portfolio and strengthens our offer in several regional markets where we see good occupational demand.”