London & Scottish Property Investment Management, the asset manager for office and industrial investment trust Regional REIT, has bought Global Reach, a flagship office building in Cardiff’s Celtic Gateway Business Park for £8.4 million.
The four-floor Grade A office building was built in 2008 and refurbished in 2017. It provides 61,641 sq ft of accommodation across four floors and has 200 dedicated car parking spaces.
The property is fully let to Relx UK Ltd, NFU Mutual Insurance, The British Diabetic Association, Active Quote Ltd, Source Insurance Ltd and Wilmott Dixon Construction Ltd.
Situated three miles south-west of Cardiff city centre on the west side of the bay, Celtic Gateway Business Park is already home to several high-profile businesses. Total rent for the property is £803,000 (£13.02 sq ft) per annum, reflecting a net initial yield of 8.9%.
The deal is the company’s third acquisition in the region in the last month. On 2 October it bought a 68,500 sq ft office in Swansea and a 22,300 office in Bristol for £10.2 million. The purchases were financed by the disposal a day earlier of a £32.7 million warehouse and logistics site in Basildon, Essex.
Stephen Inglis, CEO of London & Scottish, said:
“The acquisition of this Grade A flagship office property highlights our disciplined approach to capital management, with recent disposal proceeds being promptly redeployed in property that provides an attractive yield.
“There is high demand for good office space outside city centres. The acquisition of Global Reach which is fully let to high-quality occupiers that provide online and essential services will further diversify our portfolio into sectors that have been very resilient during the Covid crisis.”