Business
Property Asset Management Update
Property Asset Management Update.
About this update from Regional Reit Ltd.
[{"type":"text","content":"\n \nRNS Number : 9363K Regional REIT Limited 06 January 2016 \n\n6 January 2015\nRegional REIT Limited\n \n(\"Regional REIT\" or the \"Company\")\n \nProperty asset management update\n \n \nRegional REIT (LSE: RGL), the recently listed regional commercial property company, today announces it has completed the acquisition of Rosalind House in Basingstoke at price of £3 million.\nThe office building, which encompasses 26,448 sq. ft. and is let until 2020, provides a net annual income of £396,000, equating to an initial yield of 12.48%.\n \nThis acquisition follows on from the announcement made on December 30th that Regional REIT had exchanged contracts to purchase five regional assets from a retained client of La Salle Investment Management for a total consideration of £37.5 million in an off-market deal.\n \nThat portfolio, consisting of four multi-let office buildings in Basingstoke, Leeds, Leicester and Manchester and an industrial business park in Beverley, totals c.703,000 sq. ft., providing a net income of £3.38 million per annum. This equates to a yield of 8.25%, and is to be funded from the Company's existing resources. Completion will take place before the end of January 2016. \n \nThe portfolio offers excellent potential upside through intensive asset management including refurbishment and re-letting of vacant accommodation, letting already refurbished space and potential development upside for residential/hotel/student residential at Leeds and Leicester and mixed use industrial or trade sales at Beverley, subject to planning.\n \nThese acquisitions are in line with the investment policy and are earnings enhancing from day one.\n \nUpdates on other parts of the portfolio\n \nIn other deals, Regional REIT continues to demonstrate its focus on its existing portfolio and has completed several active asset management projects in recent weeks, generating additional income through new lettings and maintaining and improving income through lease renewals and re-gears.\n \nGlasgow\nAt Tay House, the REIT's large Grade A office building in Glasgow, the Company has completed a deal with Barclays Bank plc, the major tenant of the building, occupying 78,044 sq. ft., to provide guaranteed income until October 2021.\nIn addition, refurbishment works have commenced on th...