Regional REIT has decided to exit industrials and retail and double down on office investment.
Following the coronavirus pandemic, the REIT’s board has undertaken a strategic review of its assets to maximise returns and will dispose of 20% of its £739.9m portfolio.
It will recycle the capital, focusing solely on offices outside of the M25, taking advantage of “sector inefficiences”. This made up 80.3% of the portfolio by value at 30 September.
The remaining portfolio includes 17 industrial assets valued at £105.8m and 20 retail assets valued at £32.2m at 30 June.
Its current industrial portfolio includes the £31.5m Juniper Park in Basildon and Road 4 Windsford Industrial Estate in Winsford, which is valued at £15.7m.
The REIT may also undertake a buyback of its own shares using proceeds from asset sales.
Stephen Inglis, chief executive of London & Scottish Property Investment Management, the asset manager of the REIT, said the new focus “will allow the company to take full advantage of the current sector inefficiencies being observed”.
He added: “It is envisaged that the company’s decision to focus solely on quality office assets for the foreseeable future will drive considerable value creation for shareholders by leveraging the manager’s key expertise, while also serving as a major factor of differentiation for the company from existing London listed REITs.”
To send feedback, e-mail emma.rosser@egi.co.uk or tweet @EmmaARosser or @estatesgazette
