London, 7 July 2022 – Regional REIT, the regional office specialist, has completed the acquisition of a portfolio of three offices in Yorkshire from clients of Commercial Estates Group (CEG), for a combined purchase price of £26.5m - representing a blended net initial yield of approximately 8.0%.
Cushman & Wakefield advised Regional REIT’s Asset Manager, London and Scottish Property Investment Management (LSPIM), throughout the acquisition.
The assets are One Northbank in Sheffield, 84 Albion Street in Leeds city centre, and Building 1175 at Thorpe Park, Leeds. Collectively, the three buildings offer 124,000 sq ft of high-quality, well-let office accommodation in established office locations. The portfolio is 98% let and generates an income in the region of £2.3m per annum.
Richard Brooke, Partner in Cushman & Wakefield’s Capital Markets team, said: “We are delighted to have advised LSPIM on this off-market acquisition. The Yorkshire office market remains undersupplied in quality office accommodation. With all these buildings benefitting from recent refurbishments, they offer attractive spaces for occupiers in their respective markets, and we are confident that they will perform well for Regional REIT.”
Stephen Inglis, CEO of LSPIM, the Asset Manager of Regional REIT, commented: “The three acquired assets announced today are high-quality and well-located buildings in core cities, purchased at a strong accretive blended yield of 8.0%. All are leased to high calibre tenants in a growth region of the UK where we are keen to increase the portfolio's exposure. The assets also provide us with compelling opportunities to drive further value through asset management activity, whilst delivering attractive income streams.”
Nick Barker, Acquisitions Manager at CEG, said: “Having successfully secured a number of high-profile tenants across the three assets, we were pleased to dispose of them to Regional REIT ahead of our business plan. The receipts will be invested into ongoing CapEx to improve our wider office holdings across the country, as we continue to create exceptional workspaces for our customers.”