A Scunthorpe industrial property has been sold as part of a major deal.
Regional REIT, the UK regional office specialist, has exchanged contracts with ARA Dunedin for the disposal of a significant industrial property portfolio for £45m. The completion is conditional upon the purchaser having in place the required financing.
The deal is in line with the company’s stated strategy to exit the industrial sector in preference for higher yielding regional office investments.
During the company’s ownership of the seven industrial properties (801,787 sq ft) located in Bromborough, Erith, Nottingham, Scunthorpe, Telford, Winsford and Wisbech, several asset management initiatives have been actioned to increase value.
These initiatives included a series of renovations and the subdivision of some of the larger units, which assisted in improving occupancy rates, rental income and in turn, capital values.
Stephen Inglis, CEO of London & Scottish Property Investment Management, the Asset Manager of Regional REIT, said: “The disposal of this industrial portfolio at 18% above the acquisition price enables the recycling of capital into higher yielding assets, where our bespoke asset management platform can best add shareholder value.
“This will also allow the company to continue to focus on its clear strategy of offering investors exposure to a geographically diversified portfolio of regional office assets.”