TIDMRGL

RNS Number : 3221Y

Regional REIT Limited

31 December 2019

31 December 2019

REGIONAL REIT Limited

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

Attractive Office Acquisition for GBP10.3m

Regional REIT (LSE: RGL), the regional real estate investment specialist focused on building a diverse portfolio of income producing regional UK core and core plus office and industrial property assets, is delighted to announce today that it has acquired a valuable office asset in one of Scotland's premier business parks for a total consideration of GBP10.3m.

The office asset comprises 43,676 sq. ft. over 3 floors, currently 100% let to John Menzies plc, an international aviation business and one of Scotland's largest companies.

The current contracted rent of GBP880,000 per annum provides a net initial yield of 8.0% with 3.75 years to lease expiry.

The office asset is in Edinburgh Park, firmly established as one of Scotland's key business parks providing more than 1 million sq. ft. of office accommodation to over 30 occupiers with excellent connectivity to both Edinburgh city centre and Edinburgh airport.

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

"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."

- ENDS -

Enquiries:

 
Regional REIT Limited 
 
 
Toscafund Asset Management                        Tel: +44 (0) 20 7845 
                                                   6100 
Investment Manager to the Group 
Adam Dickinson, Investor Relations, Regional 
 REIT Limited 
 
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                                      regional@buchanan.uk.com 
Charles Ryland / Victoria Hayns / Henry 
 Wilson 
 

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 Toscafund Asset Management LLP, the Investment Manager.

Regional REIT's commercial property portfolio is comprised wholly of income producing UK assets and comprises, predominantly, offices and industrial units located in the regional centres outside of the M25 motorway. The portfolio is highly diversified, with 149 properties, 1,178 units and 828 tenants as at 30 June 2019, with a valuation of GBP721.7m.

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

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December 31, 2019 02:00 ET (07:00 GMT)

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