Political uncertainty has allowed Regional REIT to muscle in with the large institutional players and acquire a headquarters office building at one of Scotland’s premier business parks.
The REIT has bought the Scottish headquarters of aviation business John Menzies for £10.3m – an 8% yield.
The 43,676 sq ft office at Edinburgh Park has 3.75 years left on its lease and provides an annual income of £800,000.
Stephen Inglis, chief executive of London and Scottish Property Investment Management, Regional REIT’s asset manager, said: “This is a prime asset in the best position on the internationally renowned Edinburgh business park.
“It is let to a quality tenant and we have been able to take advantage of uncertainty in the UK political and economic outlook at the time of agreeing this deal. This has allowed us to acquire an asset… dominated by large institutional investors and a market that was simply not previously within our reach given our investment criteria and returns requirements.
“This acquisition demonstrates our ability to secure deals on favourable terms and offers us an accretive asset management opportunity in the medium term to optimise value for our shareholders.”
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