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RNS Number : 8596S Regional REIT Limited 09 November 2023
9 November 2023
REGIONAL REIT Limited
("Regional REIT" the "Group" or the "Company")
Office Sale 26.3% above Valuation
Successful Glasgow Office Sale for £6.25m
Regional REIT Limited (LSE: RGL), the UK regional property specialist, is
today pleased to announce that it has exchanged and completed on the sale of
its Venlaw and Elmbank Gardens offices at Charing Cross, Glasgow for £6.25m.
This represents a substantial uplift of 26.3% against the most recent
valuation at 30 June 2023.
The 51,775 sq. ft. of office and ancillary leisure space comprises 23
individual units let on 13 separate leases. The purchaser intends to redevelop
the office space for student and residential use.
The proceeds will be used to reduce the Company's debt. The Board remains
focused on a controlled disposal programme to bring the LTV back to the
Company's long-term target of 40%.
Stephen Inglis, CEO of London & Scottish Property Investment Management,
Asset Manager commented:
"The sale of Venlaw and Elmbank Gardens at 26.3% above the 30 June 2023 year
end valuation, concludes the successful long term business plan for the site
and is testament to the capabilities of the asset management team to add
considerable value.
"This sale brings total disposals to £26.0m in the financial year to date
(before costs) equating to 2% above their last valuation. We continue to
remain committed to a programme of asset sales to reduce net borrowings back
to the Company's long term c.40% LTV target, whilst maintaining the quarterly
dividend."
- ENDS -
Enquiries:
Regional REIT Limited
Press enquiries through Buchanan
ARA Europe Private Markets Limited Tel: +44 (0) 20 7845 6100
Investment Adviser to the Group
Adam Dickinson, Investor Relations
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
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 ARA Europe Private Markets Limited, the Investment Adviser.
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 150 properties, 1,021 tenants as at 30 September 2023, with
a valuation of c.£752.9m.
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/) .
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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