Regional REIT Limited Portfolio Update (6759C)

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RNS Number : 6759C

Regional REIT Limited

19 June 2019

19 June 2019

REGIONAL REIT Limited

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

Portfolio Update: 11.6% Rental Uplift on occupied assets

Regional REIT Limited (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, today announces the following update on lettings to new and existing tenants in its portfolio. Together these letting updates represent a headline rent of GBP545,654 across a total of 43,681 sq. ft.

Of this total, four previously vacant units at Mandale Business Park (Grd Floor Humber House), Market Dock (Unit 2), Milburn House (Suite D11) and Rivermead Court (Building 2), together representing GBP102,276 of headline rent, are now occupied with attractive tenancies providing additional strong sources of income for the Company.

The remaining lettings to new and existing tenants represent a rental uplift of 11.6%, providing a new headline rent of GBP443,379.

Tenancies have been successfully renewed or let at the following sites:

Rivermead Court, Clevedon: Building 2 at Rivermead Court has secured a new letting with Claverham Group. Claverham has re-geared their lease on the first floor and taken a new lease on the ground floor, subject to the completion of refurbishment works on the ground floor suite. In total, Claverham will occupy 9,485 sq. ft. of the property.

Milburn House, Newcastle Upon Tyne: Capita Business Services, a significant tenant at Milburn House that occupies 8,543 sq. ft. of the site has renewed its upcoming lease on Suites C9, 10 and 11, a total of 4,885 sq. ft. In addition, they have signed a new lease for Suite D11 to occupy a further 390 sq. ft in the building.

Parkway Business Centre, Deeside: Units A&B comprising 7,013 sq. ft. have been re-let to Booker Ltd.

Quadtech Business Park, Hemel Hempstead: Unit 2 comprising 5,001 sq. ft. has been re-let to KLT Construction.

Woodland Court, Bristol: Unit 7 comprising 3,584 sq. ft. has been re-let to Rheinmetal Defence UK Ltd.

Albert Edward House, Preston: GF Units 3-4 comprising 3,511 sq. ft. have been let to a new tenant, Spamedica Ltd.

The Genesis Centre, Warrington: Suites 3-6 comprising 3,007 sq. ft. have been re-let to Gleeds UK.

Cedar House III Business Park, Stockton on Tees: 1,830 sq. ft. of the first floor has been re-let to Sanlam Private Investments Ltd. In addition, 1,400 sq. ft. on the second floor has been re-let to Aecom Infrastructure & Environmental UK Ltd.

Market Dock, Stockton on Tees: The Company has agreed a new 1,545 sq. ft. letting at Unit 2 with ICW Technical Services Ltd.

Mandale Business Park, Durham: The Group has successfully secured two new lettings. Firstly, 1,250 sq. ft. in the Ground Floor of Humber House to Clark Degnan Ltd and a further 780 sq. ft. in Unit A of Forth House to café operator, Keely Taylor Kay as part of the Group's strategy to improve amenities at the site.

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

"We are delighted to once again report continuing strong operational progress within our diversified portfolio of high-quality office and industrial regional property assets. The 11.6% rental uplift achieved for previously occupied assets demonstrates not only the success of the Group's active management approach but also that demand for our regional offices and industrial sites remains very strong."

- ENDS -

Enquiries:

 
Regional REIT Limited 
Press enquiries through Buchanan 
 
Toscafund Asset Management                        Tel: [phone] 
                                                   6100 
Investment Manager to the Group 
Adam Dickinson, Investor Relations, Regional 
 REIT 
 
London & Scottish Property Investment Management  Tel: +44 (0) 141 
                                                   248 4155 
Asset Manager to the Group 
Stephen Inglis 
 
Buchanan Communications                           Tel: [phone] 
                                                   5000 
Financial PR 
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 150 properties, 1,192 units and 874 tenants as at 31 December 2018, with a valuation of GBP718.4m.

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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June 19, 2019 02:00 ET (06:00 GMT)