LONDON (Alliance News) - Regional commercial property investor Regional REIT Ltd said Wednesday it has sold two of its properties for a total of GBP21.5 million and has signed an agreement with Regus PLC for the management of office building Tay House's second floor.
Regional REIT said it has sold its student accommodation property Blythswood House in Glasgow to asset manager Standard Life Investments Ltd for GBP17.4 million, reflecting a net initial yield of 5.0%. The company said the sale price represents a profit on acquisition and construction costs of more than 60% and is in line with the valuation at June 2015.
The company also noted the sale of Unit A, Spectrum Business Park in Wrexham to an unnamed party for GBP4.1 million, representing a net initial yield of 8.5% and coming in 22% higher than the valuation at June 2015. The site is a standalone unit let to Calypso on a lease until October 2020, Regional REIT said.
Regional REIT said, as well as the disposals, it has completed a ten-year agreement with office provider Regus, for 30,000 square feet of floor space at its Grade A office building Tay House in Glasgow. Under the agreement, Regus will manage the space within the property and will provide Regional REIT with a rent of GBP750,000 net per annum once the space is fully occupied.
Regional REIT said this leaves it with only 20,000 square feet to let in the property. Barclays Bank PLC currently occupy 78,044 square feet of Tay House.
Shares in Regional REIT were down 1.9% at 101.00 pence on Wednesday.
By Hannah Boland; hannahboland@alliancenews.com; @Hannaheboland
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