Business
Positive Portfolio Update
Positive Portfolio Update.
About this update from Regional Reit Ltd.
[{"type":"text","content":"\n \n \n 18 May 2022\n \n \n REGIONAL REIT Limited\n \n \n (\"Regional REIT\", the \"Group\" or the \"Company\")\n \n \n \n Positive Portfolio Update\n \n \n \n \n £48.2m Acquisitions yielding 8.7%\n \n \n \n \n \n \n \n \n \n \n \n Regional REIT Limited (LSE: RGL), the regional office specialist, is pleased to announce the acquisition of three separate office investments in Derby, Milton Keynes and Crawley for £19.8m, £15.9m, and £12.5m respectively, reflecting net initial yields of 8.6%, 8.9% and 8.4%, with an overall blended net initial yield of 8.7%. In addition, since the 31 March 2022 a number of smaller vacant and non-core assets have been sold for £35.1m at a net initial yield of 6.6%, and broadly in line with their 31 December 2021 book value, taking the overall disposals this year to £68.6m.\n \n \n \n \n \n Orbis 1-3, Derby (totalling 122,153 sq. ft.), are situated on a 7.54 acre site on the prime Pride Park business park. The offices (EPC B) are currently 100% let to the DHU Healthcare C.I.C.,which provides partner services to the NHS, Firstsource Solutions UK Ltd., and Tentamus Pharma (UK), a specialist pharmaceutical company, with a contracted rent of £1.8m per annum (pa) (£14.93 psf.).\n \n \n \n \n \n Linford Wood Business, Milton Keynes, (totalling 115,315 sq. ft.) is set in 8.4 acres, in close proximity to Central Milton Keynes, with extensive parking. Milton Keynes is in the 'UK Growth Corridor' between Oxford and Cambridge, the UK Government's vision for maximising population growth, business expansion and economic output. It comprises one single-let and four multi-let office buildings, all of which are rated EPC C, and are let to a range of high quality tenants, including Kantar Consulting and IM Serve Europe, producing an income of £1.5m pa (£14.53 psf.).\n \n \n \n \n \n Origin 1 (EPC B) & 2 (EPC C), Crawley (totalling 45,855 sq. ft.) comprises two office buildings, which are situated on a 1.9 acre corner site on Crawley High Street. The three and four storey offices being fully let generate in aggregate a rent of £1.1m pa (£24.34 psf.) from high quality tenants.\n \n \n \n \n \n In line with its strategy, the Company has been disposing of non-core and vacant assets, as well as assets that are at the end of their business plans, and promptly recycling capital into hi...