Regional REIT acquires £31.4m worth of British office space

Property investor Regional Real Estate Investment Trust exchanged contracts on a portfolio of new assets on Friday.

Regional spent a total of £31.4m to acquire the 275,000 square foot of office space in Hull, High Wycombe, Stockton-on-Tees, Ipswich, Clevedon, Wakefield, Deeside and Lincoln.

The London-listed investment trust told shareholders the assets would provide a net income of approximately £2.81m per year, which equates to a net initial yield of 8.66%.

Stephen Inglis, chief executive of London and Scottish Investments, Regional REIT's asset manager, said, "This acquisition once again highlights our disciplined approach to capital management, with disposal proceeds being promptly redeployed ensuring minimal cash drag."

"In addition, the portfolio, which presents good asset management opportunities, complements our existing income streams and further diversifies both our tenant base and our exposure to different regions," Inglis added.

As of 0840 BST, Regional shares had inched forward 0.48% to 95.36p.