Regional REIT said it acquired a roughly 44,000 sq. ft. office block at Edinburgh Park for £10.3 million.

The 3-storey block is currently 100% let to aviation firm John Menzies.

Regional REIT is real estate investment trust managed by London & Scottish Property Investment Management Limited and Toscafund Asset Management LLP.

Regional REIT said the current contracted rent of £880,000 per annum provides a net initial yield of 8.0% with 3.75 years to lease expiry.

London and Scottish Property Investment Management CEO Stephen Inglis 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 on Park 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.

“Further, we are delighted to incorporate another major letting to a significant international blue chip tenant within our portfolio.”