RGL Regional Reit Limited

TIDMRGL

RNS Number : 8596S

Regional REIT Limited

09 November 2023

9 November 2023

REGIONAL REIT Limited

("Regional REIT" the "Group" or the "Company")

Office Sale 26.3% above Valuation

Successful Glasgow Office Sale for GBP6.25m

Regional REIT Limited (LSE: RGL), the UK regional property specialist, is today pleased to announce that it has exchanged and completed on the sale of its Venlaw and Elmbank Gardens offices at Charing Cross, Glasgow for GBP6.25m. This represents a substantial uplift of 26.3% against the most recent valuation at 30 June 2023.

The 51,775 sq. ft. of office and ancillary leisure space comprises 23 individual units let on 13 separate leases. The purchaser intends to redevelop the office space for student and residential use.

The proceeds will be used to reduce the Company's debt. The Board remains focused on a controlled disposal programme to bring the LTV back to the Company's long-term target of 40%.

Stephen Inglis, CEO of London & Scottish Property Investment Management, Asset Manager commented:

" The sale of Venlaw and Elmbank Gardens at 26.3% above the 30 June 2023 year end valuation, concludes the successful long term business plan for the site and is testament to the capabilities of the asset management team to add considerable value.

"This sale brings total disposals to GBP26.0m in the financial year to date (before costs) equating to 2% above their last valuation. We continue to remain committed to a programme of asset sales to reduce net borrowings back to the Company's long term c.40% LTV target, whilst maintaining the quarterly dividend."

- ENDS -

Enquiries:

 
Regional REIT Limited 
Press enquiries through Buchanan 
 
ARA Europe Private Markets Limited                Tel: +44 (0) 20 7845 6100 
Investment Adviser to the Group 
Adam Dickinson, Investor Relations 
 
London & Scottish Property Investment Management  Tel: +44 (0) 141 248 4155 
Asset Manager to the Group 
Stephen Inglis 
 
Buchanan Communications                           Tel: +44 (0) 20 7466 5000 
Financial PR 
Charles Ryland, Henry Wilson, George Beale 
 

About Regional REIT

Regional REIT Limited ("Regional REIT" or the "Company") and its subsidiaries (the "Group") is a United Kingdom ("UK") based real estate investment trust that launched in November 2015. It is managed by London & Scottish Property Investment Management Limited, the Asset Manager, and ARA Europe Private Markets Limited, the Investment Adviser.

Regional REIT's commercial property portfolio is comprised wholly of income producing UK assets and comprises, predominantly of offices located in the regional centres outside of the M25 motorway. The portfolio is geographically diversified, with 150 properties, 1,021 tenants as at 30 September 2023, with a valuation of c.GBP752.9m.

Regional REIT pursues its investment objective by investing in, actively managing and disposing of regional core and core plus property assets. It aims to deliver an attractive total return to its Shareholders, targeting greater than 10% per annum, with a strong focus on income supported by additional capital growth prospects.

The Company's shares were admitted to the Official List of the UK's Financial Conduct Authority and to trading on the London Stock Exchange on 6 November 2015. For more information, please visit the Group's website at

www.regionalreit.com   . 

Cautionary Statement

This document has been prepared solely to provide additional information to Shareholders to assess the Group's performance in relation to its operations and growth potential. The document should not be relied upon by any other party or for any other reason. Any forward looking statements made in this document are done so by the Directors in good faith based on the information available to them up to the time of their approval of this document. However, such statements should be treated with caution due to the inherent uncertainties, including both economic and business risk factors, underlying any such forward-looking information.

ESMA Legal Entity Identifier ("LEI"): 549300D8G4NKLRIKBX73

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END

DISUWOKRORUARAA

(END) Dow Jones Newswires

November 09, 2023 02:00 ET (07:00 GMT)

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