Gerald Eve has advised Regional REIT, on its purchase of the Skylar Portfolio for £31.4 million.
The portfolio consists of eight offices located in Hull, High Wycombe, Stockton-on-Tees, Ipswich, Clevedon, Wakefield, Deeside and Lincoln. The assets total circa 275,000 sq ft and are expected to provide a net income of approximately £2.81 million per annum from 24 tenants.
The acquisition reflects a net initial yield of 8.66%.
Leo Zielinski, partner at Gerald Eve, said: “The acquisition enabled Regional REIT to promptly redeploy the proceeds from the recent Bluebell industrial portfolio sale – also advised by GE – and capitalise on the current yield arbitrage opportunity in the market between industrials and regional offices. The portfolio provides numerous asset management opportunities and further diversifies both its tenant base and exposure to different regions.”