Regional Reit Share Discussion Threads

[skyship] 07/12/2017 16:56

Dealing costs!!! Bought at that 1.00897p & in my case just £4.95 for any size transaction; though + £1 for over £10k.

Really good thing of course - No Stamp Duty.

[solarno lopez] 07/12/2017 16:42

you forgot dealing costs !

[eltox] 07/12/2017 16:32

Just checked the buy price and was given 1.00897 so right now the 1 to 8 open offer allocation is of no benefit to existing holders...

[skyship] 07/12/2017 16:26

There was the info in my InBox...

Haven't subscribed for entitlement or excess as have just bought slightly below 101p in the Market!

[skyship] 07/12/2017 15:33

Likewise - entitlement added to my YouInvest SIPP, but no note through yet for instructions.

[stewart64] 07/12/2017 14:39

Thanks.....don't think I will bother adding it's at 101.

[alan@bj] 07/12/2017 14:27

No, that's your 1 for 8 entitlement in the Open Offer, at 101p per share. My HL account is showing 1250. I haven't had anything from them yet though, requesting my instructions.

[stewart64] 07/12/2017 14:13

I've got 912 bonus shares showing on my Hargreaves account, listed separately, of indeterminate value; roughly one eighth of my holding. A glitch, or are we getting additional rights for free ?

[speedsgh] 06/12/2017 12:35

New Edison research note...

Significant proposed growth and funding -

[speedsgh] 06/12/2017 12:11

From pg65 of the Prospectus pdf...

4.1 Financial effects [of the Capital Raising]
Upon Admission, assuming Gross Capital Raising Proceeds of £100 million, the Enlarged Share Capital of the Company will be 399,553,808 Ordinary Shares. This includes 300,543,908 Existing Ordinary Shares, and up to 99,009,900 New Ordinary Shares to be issued pursuant to the Firm Placing, Placing, Open Offer and Offer for Subscription. On this basis, the Open Offer Shares will represent approximately 9.40 per cent. of the Enlarged Issued Share Capital (assuming full take-up of the Open Offer).

Following the issue of New Ordinary Shares to be allotted and issued pursuant to the Capital Raising, Qualifying Shareholders who take up their full Open Offer Entitlements will suffer a dilution of 15.4 per cent. to their interests in the Company (assuming Gross Capital Raising Proceeds of £100 million).

Qualifying Shareholders who do not take up any offer of their Open Offer Entitlements will suffer a dilution of 24.8 per cent. to their interests in the Company (again, assuming Gross Capital Raising Proceeds of £100 million.

The percentage of the Company’s issued share capital that the Existing Ordinary Shares represent will be reduced by 24.8 per cent. to 75.2 per cent. as a result of the Capital Raising (again, assuming Gross Capital Raising Proceeds of £100 million).

[speedsgh] 06/12/2017 11:55

From pg65 of the Prospectus pdf...

4.2 Effects of the Acquisitions
The Company estimates that the First New Portfolio Acquisition and the Second New Portfolio Acquisition will generate a net initial yield of 8.6 per cent. (based on acquisition costs of 2.6 per cent.) and a reversionary yield of 10.2 per cent.

[speedsgh] 06/12/2017 11:26

From the Dividend Policy section of the Prospectus pdf...

The next dividend is expected to be declared in March 2018 and paid in April 2018 (the “Q4 Top Up Dividend”). The Board’s current intention is to pay an amount of approximately 2.45 pence per share in relation to the Q4 Top Up Dividend.

The New Ordinary Shares issued in connection with the Capital Raising will rank, from Admission, pari passu in all respects with the Existing Ordinary Shares and will have the right to receive all dividends and distributions declared in respect of issued Ordinary Share capital of the Company after Admission, including the Q4 Top Up Dividend.

The Company intends to pursue a progressive dividend policy and its quarterly dividends provide a source of regular income for Shareholders, thus improving their cashflow return profile...

[speedsgh] 06/12/2017 11:16

Link to Proposed Capital Raise webpage on RGL website -

Direct link to Prospectus pdf -

[speedsgh] 05/12/2017 12:46

Publication of a Prospectus & Notice of EGM -

Regional REIT (ticker: RGL), the UK regional office and industrial property focused REIT, is pleased to announce the publication of a prospectus dated 5 December 2017 (the "Prospectus") in connection with the proposed Capital Raising which was announced on 4 December 2017.

The Prospectus, which contains the notice convening the Extraordinary General Meeting to be held at 11.00 a.m. on 19 December 2017 at the offices of Macfarlanes LLP, 20 Cursitor Street, London EC4A 1LT, will be posted to Regional REIT Shareholders today together with, in the case of Regional REIT Shareholders who hold Existing Ordinary Shares in certificated form, that is not in CREST, the Form of Proxy for voting on the Resolutions to be proposed at the Extraordinary General Meeting. For those Regional REIT Shareholders who hold their Existing Ordinary Shares in certificated form, an Application Form in respect of their Open Offer Entitlements has also been posted.

The Prospectus has also been submitted to the National Storage Mechanism where it will shortly be available for inspection at www.morningstar.co.uk/uk/NSM. In addition, the Prospectus and Form of Proxy will shortly be available to view on Regional REIT's website, hxxp://www.regionalreit.com/, and will be made available for inspection at Toscafund Asset Management LLP, 90 Long Acre, London, WC2E 9RA.

[lord gnome] 05/12/2017 10:46

Thanks speedsgh. After reading that in detail I am much happier. The second portfolio provides a yield of 9% and yet it is only 75% let. WAULT is very short, but perhaps RGL see a management opportunity here.

[skyship] 05/12/2017 10:41

Well, having top-sliced a few @ 104.25pXD, I'll certainly be looking to get those back...though the 1-for-8 offer suggests I'm being rather optimistic!

Property yields of c9% and long-term debt @ 3.35% certainly suggests the property game has a lot more to go for outside London...

[speedsgh] 05/12/2017 10:20

EXPECTED TIMETABLE OF PRINCIPAL EVENTS

Record Time for entitlements under the Open Offer -- 6.00 p.m. on 1 December 2017

Ex-Entitlements date for the Open Offer -- 8.00 a.m. on 5 December 2017

Publication and despatch of Prospectus, Form of Proxy, Subscription Forms and, to Qualifying non-CREST Shareholders, Open Offer Application Form -- 5 December 2017

Open Offer Entitlements and Excess Open Offer Entitlements credited to stock accounts of Qualifying CREST Shareholders in CREST -- As soon as possible on 6 December 2017

Recommended latest time for requesting withdrawal of Open Offer Entitlements and Excess Open Offer Entitlements from CREST (i.e. if your Open Offer Entitlements and Excess Open Offer Entitlements are in CREST and you wish to convert them to certificated form) -- 4.30 p.m. on 13 December 2017

Latest time and date for depositing Open Offer Entitlements into CREST -- 3.00 p.m. on 14 December 2017

Latest time and date for receipt of Forms of Proxy and receipt of electronic proxy appointments via CREST -- 11.00 a.m. on 15 December 2017

Latest time and date for splitting of Open Offer Application Forms (to satisfy bona fide market claims only) -- 3.00 p.m. on 15 December 2017

Latest time and date for receipt of completed Open Offer Application Forms and payment in full under the Open Offer or settlement of relevant CREST instruction (as appropriate). Open Offer Entitlements and Excess Open Offer Entitlements disabled in CREST -- 11.00 a.m. on 19 December 2017

Latest time and date for receipt of Placing commitments -- 11.00 a.m. on 19 December 2017

Latest time and date for receipt of completed Subscription Forms in respect of the Offer for Subscription -- 11.00 a.m. on 19 December 2017

Extraordinary General Meeting -- 11.00 a.m. on 19 December 2017

Announcement of results of Extraordinary General Meeting -- by 7.00 a.m. on 20 December 2017

Results of the Placing and Capital Raising announced through a Regulatory Information Service -- by 7.00 a.m. on 20 December 2017

Admission and commencement of dealings in New Ordinary Shares -- 8.00 a.m. on 21 December 2017

Expected date of despatch of definitive share certificates for Open Offer Shares (to Qualifying non-CREST Shareholders) and new Ordinary Shares under the Offer for Subscription -- within 5 Business Days

[speedsgh] 05/12/2017 10:14

REFINANCING
The Asset Manager is in the process of arranging a new 10 year long term debt facility (the "Long- term Facility"), in relation to which terms have been agreed and credit approval has been obtained with two lenders (the "New Lenders"). The Long-term Facility will replace the following five of the Group's existing bank facilities with Santander UK, The Royal Bank of Scotland Plc and Lloyds Banking Group, which in aggregate amounts to approximately £164 million:

BORROWER -- PROVIDER -- AMOUNT OUTSTANDING AS AT 4 DECEMBER 2017 (£'000)
TCP Channel Ltd -- Santander UK -- 20,840
TCP Arbos Ltd -- Royal Bank of Scotland -- 24,450
RR Wing Portfolio Limited -- Santander UK -- 30,990
RR Rainbow Portfolio -- Royal Bank of Scotland -- 39,848
Lamont and Tapp Portfolio -- Lloyds Banking Group -- 48,100

The total interest cost of the refinancing is anticipated to be 3.3 per cent. to 3.4 per cent. fixed for the duration of the Long-term Facilities. It is anticipated that the Long-term Facilities will contain customary undertakings and events of default, along with financial covenants, including in relation to historic interest, projected interest cover and loan to value ratio. Completion of the Long-term Facilities is expected to take place in December 2017.

The Group's remaining borrowings consist of the Zero Dividend Preference Shares (comprising a total amount of approximately £37 million due to mature in January 2019) and the ICG Longbow Ltd facility of £65 million (due to mature in August 2019). The Group intends, in due course, to refinance the Zero Dividend Preference Shares or alternatively to repay them using existing resources raised at the time in the ordinary course of the Group's business and to refinance the ICG Longbow Ltd facility.

[speedsgh] 05/12/2017 10:09

@LG...

SECOND NEW PORTFOLIO
The Company (through its wholly owned subsidiary Midco) has conditionally agreed to acquire a portfolio of 17 office properties from Archimedes Real Estate LP (a fund managed by M7 Real Estate Limited) for aggregate cash consideration equal to the estimated net asset value of the assets of the corporate owner of the Second New Portfolio, less its aggregate liabilities, immediately prior to completion of the acquisition (the "Second New Portfolio Acquisition").

The Second New Portfolio comprises office properties with 210 lettable units with a total of 136 individual tenants and 75 per cent. occupancy by lettable area. The portfolio was valued at £44.8 million as at 8 November 2017, with a combined contracted rent roll of £4.2 million per annum reflecting a yield of 9.2 per cent. on a weighted average unexpired lease term of 3.1 years (2.1 years to first break).

The Second New Portfolio Acquisition is conditional upon the Company raising and being in receipt of net proceeds of at least £75 million pursuant to the Capital Raising (the "Second New Portfolio Capital Raising Condition"). After the refinancing of the First New Portfolio Acquisition, and assuming minimum net proceeds pursuant to the Capital Raising of at least £75 million, the consideration for the Second New Portfolio Acquisition is expected to be funded using the proceeds of the Capital Raising.

The Company expects to be able to waive the Second New Portfolio Capital Raising Condition if the Minimum Proceeds are raised and the Second New Portfolio Facility is available.

The Company estimates the Second New Portfolio Acquisition will be immediately earnings-enhancing.

[speedsgh] 05/12/2017 10:07

@LG...

FIRST NEW PORTFOLIO
The Company (through its wholly owned subsidiary Midco) has conditionally agreed to acquire a portfolio of three real estate properties from NW UK III Limited for aggregate cash consideration expected to be approximately £43.44 million after any relevant completion account adjustments (the "First New Portfolio Acquisition").

The First New Portfolio comprises office properties in Woking, Cheshunt and Edinburgh with 25 lettable units with a total of 18 individual tenants and a high level of occupancy (88 per cent. by lettable area). The First New Portfolio was valued at £43.5 million as at 8 November 2017, with a combined contracted rent roll of £3.6 million per annum reflecting a yield of 8 per cent. on a weighted average unexpired lease term of 6.4 years (3.3 years to first break).

The aggregate cash consideration payable for the First New Portfolio is expected to be equal to the aggregate market value of the First New Portfolio, which takes into account costs of the acquisition, and therefore the Directors expect there to be little or no diminution in the Company's Net Asset Value as a result of the First New Portfolio Acquisition.

The Company estimates that the First New Portfolio Acquisition will be immediately earnings enhancing.

The Pipeline Investment comprises an office property in Portsmouth and, combined with the First New Portfolio, would result in a portfolio of 26 lettable units with a total of 19 individual tenants and occupancy of 90 per cent. by lettable area. The combined portfolio is estimated to have a total contracted rent roll of £4 million per annum reflecting a yield of 8.1 per cent. on a weighted average unexpired lease term of 6.6 years (3.4 years to first break).

[lord gnome] 04/12/2017 22:45

Not a big deal? It will increase the market cap by a third. Sneaky to put that out after hours.
I can't find anything about the yield on the properties they have bought. Have I missed it?

[davr0s] 04/12/2017 20:16

Not a big deal in the grand scheme plus we get a chance to buy discounted shares too

[hugepants] 04/12/2017 19:19

I'd guess this is slightly negative for exisiting shareholders. Not by much though, the discount to the current share price is only 3%.

[speedsgh] 04/12/2017 17:14

Proposed Firm Placing, Placing, Open Offer and Offer For Subscription to raise up to £100 million at an Offer Price of 101 pence per Ordinary Share -

Regional REIT (LSE: RGL) is pleased to announce it has agreed to acquire a portfolio of three real estate properties from NW UK III Limited comprising office properties in Woking, Cheshunt and Edinburgh and a portfolio of 17 office properties from Archimedes Real Estate LP (a fund managed by M7 Real Estate Limited) (the "Acquisitions").

To finance the Acquisitions the Company is proposing a Capital Raising to raise gross proceeds of c.£50 million through the issue of New Ordinary Shares by way of a firm placing ("Firm Placing") and additional gross proceeds of up to £50 million by way of a placing, open offer and offer for subscription ("Placing, Open Offer and Offer For Subscription"), all at an Offer Price of 101 pence per New Ordinary Share. The Capital Raising is conditional, inter alia, on minimum gross proceeds of £65 million being raised pursuant to the Capital RaisingThe Board will have the ability to increase the size of the Issue by up to 25 per cent. should there be sufficient demand.

Transaction highlights
· Proceeds of the Capital Raising intended to be used as follows:
o up to £45.8 million to finance the First New Portfolio Acquisition;
o approximately £4 million in respect of the costs of refinancing certain of the Group's debt facilities;
o up to £47.6 million to finance the Second New Portfolio Acquisition;
o up to £4.9 million to finance a pipeline investment (the "Pipeline Investment") which is in advanced negotiations and which the Company expects to complete by March 2018; and
o the remaining to capitalise on the pipeline of other investment and risk-controlled refurbishment opportunities

Acquisitions have strong strategic rationale:
o consistent with the Company's strategy to invest in regional office and industrial assets that offer good income returns and value enhancement asset management opportunities;
o complementary to existing asset base and align well with the expertise and experience of the Asset Manager;
o further diversification of geographical location with reduction in Scottish weighting in favour of the South East and of risk through the creation of a wider spread of income through the addition of 183 units let; and
o immediately income and earnings accretive