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(Sharecast News) - Regional REIT announced the sale of Bedford's Clearblue Innovation Centre for 8.8m on Thursday, achieving an 11.4% premium to its 30 June book value as part of its ongoing strategy to strengthen its balance sheet.
The London-listed company said the disposal followed the completion of its asset management objectives for the property, which is leased to SPD Development Company and generates 860,000 in annual headline rent from 58,167 square feet of lettable space, delivering a net initial yield of 9.16%.
It noted that a lease extension to September 2033 had already been agreed, alongside 0.7m of asset management works due to complete in October that would improve the building's EPC rating to B from F at acquisition.
It said the measures had contributed to a 2.3m uplift in the asset's value.
Proceeds from the sale would be used to pay down debt.
"This disposal demonstrates the success of our active asset management strategy, delivering an 11.4% premium over book value and enhancing the quality of our portfolio," said Stephen Inglis, chief executive of London & Scottish Property Investment Management, the group's asset manager.
"The improvements made to the Clearblue Innovation Centre, including a lease extension and EPC upgrade, have significantly increased its value.
"The proceeds will further strengthen our balance sheet and position us to continue creating value through disciplined capital allocation and selective asset sales."
At 1419 BST, shares in Regional REIT were down 0.33% at 121.6p.
Reporting by Josh White for Sharecast.com.
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