REG - Regional REIT Ltd - Acquisitions - Accretive 8.0% Yield

Regional REITAnnouncement

23/06/2022 07:01

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RNS Number : 8627P  Regional REIT Limited  23 June 2022

23 June 2022

REGIONAL REIT Limited

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

Acquisitions - Accretive 8.0% Yield

 

Three Yorkshire Office Assets Purchased for £26.5m

 

Regional REIT Limited (LSE: RGL), the regional office specialist, is pleased
to announce the acquisition of three separate investments in Sheffield city
centre, Thorpe Business Park, Leeds, and Leeds city centre for £8.5m, £8.6m,
and £9.4m respectively, reflecting attractive net initial yields of 9.2%,
7.1% and 7.7%, with an overall blended net initial yield of 8.0%.

 

1 North Bank, Sheffield (totalling 58,893 sq. ft.)

·    Five floors of recently refurbished Grade A office space; BREEAM
'Very Good'; EPC C with a clear plan to enhance the ratings further for
minimal capital expenditure

·    98.4% occupancy (by ERV); major tenants include Social Work England
and XLN Telecom Ltd.

·    Located to the north of the city centre, with excellent rail and road
links and 70 car parking spaces

·    Contracted rent of £0.8m (£14.09 \ sq. ft.); WAULT to first break
of 2.0 years and 4.5 years to expiry

 

Thorpe Park, Leeds (totalling 31,101 sq. ft.)

·    Two floors of recently fully refurbished office space; EPC A first
floor and EPC B ground floor

·    100% occupancy (by ERV); major tenants include Homeserve Membership
Ltd. and SpaMedica Ltd.

·    Excellent road links with 154 car parking spaces; Thorpe Park will
soon be able to boast its own railway station

·    Contracted rent of £0.7m (£21.21 \ sq. ft.); WAULT to first break
of 3.9 years and 6.7 years to expiry

 

Albion Street, Leeds (totalling 34,196 sq. ft.)

·    Six floors of recently fully refurbished well specified office space
and retail on the ground floor; EPCs range from B to D with a clear plan to
enhance the ratings further for minimal capital expenditure

·    99.0% occupancy (by ERV); major tenants include Specsavers, Akari
Care Ltd., and The National Association of Citizens Advice Bureaux

·    Located in the heart of Leeds city centre, with 14 car parking
spaces, being rich in amenities and extremely well served by transport
connections

·    Contracted rent of £0.8m (£22.55 \ sq. ft.); WAULT to first break
of 1.2 years and 2.5 years to expiry

 

Stephen Inglis, CEO of London & Scottish Property Investment Management,
the Asset Manager of Regional REIT commented:

 

"We are delighted that following the Company's announcement on 18 May of a
£48.2m acquisition yielding 8.7%, Regional REIT has made further attractive
acquisitions taking advantage of compelling market conditions for our
strategic focus on UK regional offices.

 

The three acquired assets announced today are high quality and well located
buildings, purchased at a strong accretive blended yield of 8.0%. All three
assets are supported by high quality tenants in a growth region of the UK that
we are keen to increase the portfolio's exposure to. The assets also provide
us with compelling opportunities to drive further value through asset
management activity, whilst delivering attractive income streams."

 

- 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, Henry Wilson, George Beale

 

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 of offices located in the
regional centres outside of the M25 motorway. The portfolio is geographically
diversified, with 160 properties, 1,035 occupiers as at 31 March 2022, with a
valuation of c.£874.0m.

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 (http://www.regionalreit.com/) .

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

 

 

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