Regional Reit (RGL) has acquired a portfolio of six offices for £25.9m, which are expected to produce an annual rent of £2.36m, equivalent to a net initial yield of 8.87 per cent. However, the regional commercial landlord said there is the potential for rent to be boosted by a further 9.54 per cent from the 27 tenants.
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The portfolio comprises offices in six cities – Birmingham, Bristol, Cardiff, Chester, Glasgow and Manchester – totalling 172,442 square feet of space. In July, the company raised £50m via a share placing in the hope of investing the proceeds in a pre-Brexit market where to take advantage of fewer buyers willing to invest in the non-prime assets that the Reit typically targets.
