Insider Media Limited

The Conygar Investment Company has bought various properties across the East Midlands as part of a £39.9m deal.

Conygar has snapped up nine properties from a consortium including Edinmore Group and Buccleuch Property across England and Scotland.

The annual rent roll is said to be approximately £4.22m representing a net initial yield of 10.56 per cent. The weighted average lease length at 4.26 years with 89 per cent occupancy.

The deal is set to completed using Conygar's existing cash resources with directors expecting the portfolio to be refinanced in due course.

In the East Midlands, the properties bought include:

- Ashby Park, Ashby de la Zouch - includes three office buildings totalling 95,000 sq ft let to three tenants, Alstom Power, Findel Education and Hill Rom Limited, on leases with a an unexpired term of 4.96 years and a total rental income of £1m per year.

- Witham Park House, Lincoln - a former factory divided into three separate blocks and converted into 101,000 sq ft of offices. The majority of the building is let to Lincolnshire County Council.

- Charles House, Northampton - a 28,600 sq ft building built over five floors, all let on a number of short leases.

Robert Ware, chief executive of Conygar, said: "This is an excellent off-market opportunity for Conygar, which is consistent with our strategy of acquiring assets and development opportunities where we can add further value.

"It is a high yielding portfolio with a good spread of risk and offering considerable upside from both lease re-gears and development opportunities.

"The assets are a good fit with our existing portfolio and will generate surplus cash from day one."

The deal also includes sites in Birmingham, Stafford and Wolverhampton.