24 August 2021
Completion on sale of £45 million industrial portfolio
London & Scottish Property Investment Management (LSPIM) has completed on the sale of a £45 million portfolio of seven industrial properties on behalf of UK regional office specialist Regional REIT.
The properties, totalling 801,787 sq ft, are located in Bromborough, Erith, Nottingham, Scunthorpe, Telford, Winsford and Wisbech.
The disposal is part of Regional REIT’s previously announced strategy to dispose of non-core assets and focus on higher-yielding office property that is currently mispriced in the market.
Since acquiring the industrial properties, LSPIM has added value to them through a series of asset management initiatives that have improved occupancy rates, rental income and capital values. The sale price of the assets was 7.5% above the valuation on 31 December 2020 and represents an uplift of 18% on the acquisition price after capital expenditure and costs.
Stephen Inglis, CEO of LSPIM, said: “This sale is an important step in our execution of Regional REIT’s strategy of disposing of non-core assets to focus on higher-yielding regional office property. We have a strong pipeline of regional office acquisition opportunities and anticipate recycling the proceeds quickly into highly attractive assets with significant asset management potential to create increased income and capital growth.”