Regional REIT successfully raises £50m

RNS Number : 9827W

Regional REIT Limited

07 August 2018

 

7 August 2018

REGIONAL REIT

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

SUCCESSFULLY RAISES

£50 MILLION IN BOND ISSUE

Bonds admitted to trading on London Stock Exchange today

Regional REIT, the UK regional office and industrial property focused real estate investment trust, today announces, following the successful raise of £50 million in a bond issue, the admission of the bonds to trading on the London Stock Exchange.

The bonds will pay interest at an annual rate of 4.5% and mature on 6 August 2024.

The new capital will be used by Regional REIT to repay the Group's most expensive and earliest maturing debt, the 6.5% Zero Dividend Preference Shares ("ZDPs") which were acquired as part of the Conygar portfolio acquisition on 24 March 2017. The ZDPs, which are traded on the London Stock Exchange, are due to be redeemed on 9 January 2019. At the time of maturity, it is expected that the ZDPs will have a liability of £39.9m.

The remaining capital will be used towards further reducing the cost of Regional REIT's borrowings.

Stephen Inglis, Chief Executive Officer of London & Scottish Investments Limited, the Asset Manager to Regional REIT, commented:

"We are very pleased with the response to the bond issue, which will allow us to significantly reduce the cost of our debt and extend the average maturity. This capital will cover not only the liabilities associated with the ZDP shares, but also enable us to reduce additional higher cost debt facilities."

"Regional REIT has had an active 18 months and these developments further build on the momentum and position the REIT well for the next stage of its growth."  

"We continue to see good opportunities in the regional property market and look forward to further progressing the REIT and delivering value to our investors."  

-ENDS-

Notes to Editors

For further information, please contact:

Enquiries:

Regional REIT Limited
www.regionalreit.com
Press enquiries through Headland
Peel Hunt
Henrietta Podd	[phone]
Sanjeeb Seal	[phone]
Headland	[phone]
Francesca Tuckett / Bryony Sym / Jack Gault

About Regional REIT

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 31 December 2017, was spread across 164 regional properties, 1,368 units and 1,026 tenants. As at 31 December 2017, the investment portfolio had a value of £737.3m and a net initial yield of 6.5%. 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

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

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.

 

END

 

 

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