More positive lettings for Regional REIT

RNS Number : 5204Q

Regional REIT Limited

20 February 2019

 

20 February 2019

REGIONAL REIT Limited

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

More positive lettings for Regional REIT

London & Scottish Investments Limited ("LSI"), Asset Manager to Regional REIT, the UK regional office and industrial property focused real estate investment trust, is delighted to announce further new letting agreements for the Company on top of the flurry of lettings, previously announced at the end of 2018 and earlier this year:

2800, The Crescent, Birmingham Business Park: The Group has secured the second largest letting at Birmingham Business Park in 2018. The terms of the lease, agreed in December, see an undisclosed tenant take 13,356 sq. ft. of office space at The Crescent, Birmingham Business Park, for a 10 year period at a rent of £293,832 per annum. This follows the recent full refurbishment of the building which was managed by LSI.

1^st Floor East Wing, Tay House, Glasgow: The Group has agreed a lease with the University of Glasgow which is set to run until 9^th September 2029 (tenant break clause at 10^th September 2024) for the First Floor East Wing of the Property occupying 9,971 sq. ft.. The University have also extended their existing 20,094 sq. ft. lease on the sixth floor of Tay House securing their continued occupation of the building and aligning with the new lease dates of the first floor.

3^rd Floor, Doges, Templeton On The Green, Glasgow: A new lease has been agreed with Fore Digital Ltd. for a 10 year lease (with a tenant break after 5 years) at a rent of £66,700 per annum.

Bennett House, Hanley, Stoke-On-Trent: Another letting has been secured by the Group with Secretary of State for the Housing Communities and Local Government signing a 10 year lease for the 32,512 sq. ft. office space. The agreed rent is £292,626 per annum.

Delta 1200, Delta Business Park, Swindon: Cherwell Software Ltd. has agreed to a new lease for 4,857 sq. ft. office space at £82,569 per annum for 3 years, which represents a 30% uplift on rent for the Company and maintains full occupancy of the building.

Miller Court, Tewkesbury Business Park: Unit 17 and 19 have been successfully leased to XQ Digital Resilience Ltd. and TRL Technology Ltd. for 10 and 3 year leases respectively. Under the terms of the contract, TRL Technology Ltd. will pay £161,120 per annum for the 10,070 sq. ft. unit and XQ Digital Resilience Ltd. have committed to £85,400 per annum for unit 17 which totals 6,100 sq. ft.

Stephen Inglis, Chief Executive Officer of London & Scottish Investments, commented:

 "This is fabulous news and comes close on the heels of the raft of significant lettings we announced at the end of 2018 and earlier this year. Our buildings are seeing strong letting interest and is a demonstration of our pro-active and customer focussed approach in refreshing and refurbishing our Core and Core plus buildings and our close relationship with our tenants allowing us to extend and amend leases.

Earlier this week we announced an uplift in our valuations for year ended 31 Dec 2018 and substantial profits generated from sales of assets - we continue to deliver for our shareholders".

- ENDS -

Enquiries:

Regional REIT Limited
Press enquiries through Buchanan
Toscafund Asset Management	Tel: [phone]
Investment Manager to the Group
Adam Dickinson, Investor Relations, Regional REIT Limited
London & Scottish Investments	Tel: [phone]
Asset Manager to the Group
Stephen Inglis
Buchanan Communications	Tel: [phone]
Financial PR
Charles Ryland / Victoria Hayns / Henry Wilson

About Regional REIT

Regional REIT Limited (LSE: RGL) is a London Stock Exchange Main Market traded specialist real estate investment trust focused on office and industrial property interests in the principal regional locations of the United Kingdom outside of the M25 motorway.

Regional REIT is managed by London & Scottish Investments, the Asset Manager, and Toscafund Asset Management, the Investment Manager, and was formed by the combination of two existing funds previously created by the Managers as a differentiated play on the expected recovery in UK regional property, to deliver an attractive total return to Shareholders and with a strong focus on income.

The Group's investment portfolio, as at 30 June 2018, was spread across 151 regional properties, 1,294 units and 950 tenants. As at 30 June 2018, the investment portfolio had a value of £758.7m and a net initial yield of 6.4%. The weighted average unexpired lease term to first break was 3.5 years.

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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