Regional REIT, advised by Gerald Eve, has bought a portfolio of six regional assets from Kildare Partners for £35.2 million in an off-market transaction.
The portfolio consists of five office buildings – in Bedford, Chelmsford, Dundee, Macclesfield and Rotherham – and one logistics/office property in Telford. Totalling around 320,000 sq ft, the assets are let to 12 tenants including NHS Property Services, Capgemini and Royal Bank of Scotland.
The portfolio is expected to produce a net income of c. £3.1 million per year, reflecting a net initial yield of 8.4%.
Leo Zielinski, partner at Gerald Eve, said: “We are pleased to have secured this portfolio for Regional REIT, offering significant asset management opportunities and income growth potential. This is the third off market portfolio acquisition that we have advised Regional REIT on over the last 12 months bringing the total to over £200m of deals– underlining Gerald Eve’s position as a leading advisor in portfolio investment.”