IN BRIEF: Regional REIT sells office building for PS13.0 million
Regional REIT Ltd - London-based real estate investment trust focused on commercial property outside the M25 motorway - completes the disposal of office building Oakland House for a total consideration of £13.0 million to Legacie Developments Ltd. The figure reflects a net initial yield of 5.1% and represents a 1% premium over the June 30 book value. Oakland House is a multi-let located in Manchester and is part occupied by Greater Manchester Police. It has a 35% vacancy, office space with 1.7 years to expiry, and generates annual rental income of £700,000, the company says.
Total disposals for the financial year-to-date generated £51.7 million in proceeds before costs, exceeding the £40 million to £50 million target for 2025.
‘The planned disposal programme is progressing well and in line with our plans. Annual sales to date now exceed £50 million, surpassing our yearly target. The proceeds from these disposals will be allocated towards further debt reduction and accretive capital expenditure initiatives to enhance the quality of our portfolio,’ says Stephen Inglis, the chief executive of the company’s asset manager.
Current stock price: 102.20 pence, up 2.0% on Wednesday morning in London
12-month change: down 16%
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