Business
Sale of Sheffield offices at 25% above valuation
Sale of Sheffield offices at 25% above valuation.
About this update from Regional Reit Ltd.
[{"type":"text","content":"\n \nRNS Number : 2835B Regional REIT Limited 06 June 2019 \n\n6 June 2019\nREGIONAL REIT Limited\n(\"Regional REIT\", \"the Group\" or \"the Company\")\n \nSale of Sheffield office building at 25% above Valuation\n \nRegional REIT Limited (LSE: RGL), the regional real estate investment specialists, today announces that London and Scottish Property Investment Management (LSPIM) has on behalf of Regional REIT, contracted to sell the office building known as Aspect Court, Pond Hill, Sheffield to Sheffield Hallam University for £8.8 million, reflecting a net initial yield of 6.6%. The sale price marks an uplift of 39.7% since acquisition and 24.8% against the 31 December 2018 valuation.\nThe property was purchased in 2016 for £6.3 million following which various asset management initiatives were undertaken, increasing the length of leases and rental income. \nThe total rental income for the property has increased to £620,000, representing an uplift of c. 18% from acquisition. The proceeds from the sale will be rapidly deployed towards the Group's considerable pipeline of opportunities.\nStephen Inglis, Chief Executive Officer of London & Scottish Property Investment Management, the Asset Manager, commented on the sale:\n \"Following completion of the business plan for this building, we have agreed a sale to Sheffield Hallam which already occupies the building for academic accommodation. Over the past 3 years under Regional REIT's management, we have re-geared leases, taken back and re-let several floors resulting in increasing the lease length and rental income. This has resulted in the Group achieving a substantial premium of 25% over the December 2018 valuation. \nThe Company has a very substantial pipeline of potential acquisitions and we have already identified and agreed terms to recycle the capital achieved from this sale.\"\n \n- ENDS - \nEnquiries:\n\n\n\nRegional REIT Limited\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\nToscafund Asset Management\n\n\nTel: +44 (0) 20 7845 6100\n\n\n\n\nInvestment Manager to the Group\n\n\n\n\n\n\n\nAdam Dickinson, Investor Relations, Regional REIT Limited\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\nLondon & Scottish Property Investment Management\n\n\nTel: +44 (0) 141 248 4155\n\n\n\n\nAsset Manager to the Group\n\n\n\n\n\n\n\nStephen Inglis\n\n\n\n\n\n\n\n...