Business
Attractive Disposal of Industrial Asset
Attractive Disposal of Industrial Asset.
About this update from Regional Reit Ltd.
[{"type":"text","content":"\n \nRNS Number : 4352B Regional REIT Limited 07 June 2019 \n\n7 June 2019\nREGIONAL REIT Limited\n(\"Regional REIT\", \"the Group\" or \"the Company\")\n \nAttractive Disposal of Industrial Asset\n \nRegional REIT Limited (LSE: RGL), the regional real estate investment specialists, today announces that London and Scottish Property Investment Management (LSPIM) on behalf of Regional REIT, has contracted to sell Tokenspire Business Park in Beverley for £11.1 million. The sale reflects a net initial yield of 7.0%. The sale price of £11.1 million represents an uplift of 30.6% to the acquisition price. \nThe industrial estate which extends to over 24 acres and consists of 322,211 sq. ft. of commercial space was purchased in March 2016 for £8.5 million. Since acquisition, the asset manager increased occupancy from 73.8% to 94.3%, decreasing EPRA vacancy from 26.2% to 5.7%. Simultaneously, rental income was increased to c. £829k pa, an uplift of 24% since acquisition. Key tenants include: QDOS Entertainment Limited, Sargent Electrical Services Limited and TAPCO Europe Limited. LSPIM's completed its business plan by undertaking much needed improvements to the estate's infrastructure, resulting in attracting new tenants reducing void periods, assisting in retaining existing tenants, increasing income and improving the value of the property substantially. All this was achieved well within the 5-year business plan period.\nThe LSPIM active management approach resulted in a significant increase in the number of tenants within the estate, substantially increasing occupancy.\nStephen Inglis, Chief Executive Officer of London & Scottish Property Investment Management, the Asset Manager, commented on the sale:\n \"This is a further example of achieving excellent results by utilising our unique management platform to undertake a pre-agreed business plan. This has not only achieved increased rental income but also improved the capital value of the asset. We have maximised shareholder returns by selling an asset we have completed the business plan on into a competitive attractive market for multi-let industrial properties. \nWe have a very substantial pipeline of acquisition opportunities and we will be recycling the proceeds of this sale into assets offering asset management initiatives, rental growth potential and ...