REG - Regional REIT Ltd - Positive Portfolio Update

Regional REITAnnouncement

18/05/2022 07:00

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RNS Number : 8534L  Regional REIT Limited  18 May 2022

18 May 2022

REGIONAL REIT Limited

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

Positive Portfolio Update

£48.2m Acquisitions yielding 8.7%

 

 

Regional REIT Limited (LSE: RGL), the regional office specialist, is pleased
to announce the acquisition of three separate office investments in Derby,
Milton Keynes and Crawley for £19.8m, £15.9m, and £12.5m respectively,
reflecting net initial yields of 8.6%, 8.9% and 8.4%, with an overall blended
net initial yield of 8.7%. In addition, since the 31 March 2022 a number of
smaller vacant and non-core assets have been sold for £35.1m at a net initial
yield of 6.6%, and broadly in line with their 31 December 2021 book value,
taking the overall disposals this year to £68.6m.

 

Orbis 1-3, Derby (totalling 122,153 sq. ft.), are situated on a 7.54 acre site
on the prime Pride Park business park. The offices (EPC B) are currently 100%
let to the DHU Healthcare C.I.C.,which provides partner services to the NHS,
Firstsource Solutions UK Ltd., and Tentamus Pharma (UK), a specialist
pharmaceutical company, with a contracted rent of £1.8m per annum (pa)
(£14.93 psf.).

 

Linford Wood Business, Milton Keynes, (totalling 115,315 sq. ft.) is set in
8.4 acres, in close proximity to Central Milton Keynes, with extensive
parking. Milton Keynes is in the 'UK Growth Corridor' between Oxford and
Cambridge, the UK Government's vision for maximising population growth,
business expansion and economic output. It comprises one single-let and four
multi-let office buildings, all of which are rated EPC C, and are let to a
range of high quality tenants, including Kantar Consulting and IM Serve
Europe, producing an income of £1.5m pa (£14.53 psf.).

 

Origin 1 (EPC B) & 2 (EPC C), Crawley (totalling 45,855 sq. ft.) comprises
two office buildings, which are situated on a 1.9 acre corner site on Crawley
High Street. The three and four storey offices being fully let generate in
aggregate a rent of £1.1m pa (£24.34 psf.) from high quality tenants.

 

In line with its strategy, the Company has been disposing of non-core and
vacant assets, as well as assets that are at the end of their business plans,
and promptly recycling capital into higher yielding properties with asset
management opportunities for long term shareholder value.

 

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

 

"We are delighted that the Company has made further accretive office
acquisitions supported by high quality tenants in regions which we have
identified as future growth areas. We believe all three acquisitions have
considerable potential to drive further value for our shareholders through our
active asset management approach and we look forward to providing shareholders
with further progress on our ongoing programme of capital recycling in due
course."

 

- 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 168 properties, 1,077 occupiers as at 31 December 2021, with
a valuation of c.£906.1m.

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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