Lettings Update

Regional REIT

26/06/2025 07:00

RNS Number : 4533O

Regional REIT Limited

26 June 2025

 

26 June 2025

REGIONAL REIT Ltd.

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

Lettings Update

 

Regional REIT (LSE: RGL), the regional property specialist, is pleased to announce that it has secured seven new lettings and eight lease renewals across its portfolio since the trading update on 15 May 2025. The fifteen transactions deliver a total annual rental income of over £1.6m and represent a 6.32% increase above estimated rental values, demonstrating the impact of the Group's active asset management strategy.

 

Stephen Inglis, Head of ESR Europe LSPIM Ltd., Asset Manager commented:

"This letting activity underscores the effectiveness of our capital expenditure strategy, securing rents above ERV. The lease renewals also announced today reflect the quality of our existing properties and strong relationships with our occupiers.

 

As demand continues to grow for sustainable, well-located and high-quality regional office space, and given the diminishing supply, Regional REIT is well-positioned to harness this momentum and deliver lasting value for shareholders, including the distribution of our attractive and fully covered dividend."

 

Notable new lettings and renewals leasing activity:

 

Trueman House, Capitol Park - 10-year lease for £237,779 per annum ("pa"), with a 5-year tenant break option, on 10,297 sq. ft. reflecting a rent of £23.09 per sq. ft. for 100% of the floorspace following refurbishment.

Gateway House & Newburn House, Newcastle - True Potential, tenant of Newburn House (32,221 sq. ft.) has taken a lease on the whole building at the adjacent Gateway House (22,363 sq. ft.) for 5 years at a headline rent of £245,993 pa (£11.00 psf) following the first year at half rent. True Potential has also extended its current lease at Newburn House from March 2027 until June 2030 to tie in with the lease expiry of Gateway House committing them to the location for a further 5 years. The tenant is planning to undertake a comprehensive refurbishment of Gateway, greatly improving the quality of the space, EPC rating and ESG credentials, at their expense.

 

The Coach Works, Leeds - Virtual College has signed a 10-year lease for CW1 (2,960 sq. ft.) at £88,000 pa (£29.73 psf), with a 5-year break option. EPRA occupancy for the asset is now 80% after a comprehensive refurbishment programme completed.

300 Bath Street, Glasgow - A 10-year lease has been agreed with Charles Scott & Partners Consulting Engineers Ltd. for 4,200 sq. ft. at £90,730 pa (£21.60 psf). This follows the 10-year lease for 9,500 sq. ft. (£21.50 psf) and 5-year lease for 2,960 sq. ft. (£14.50 psf) previously agreed with Securigroup Ltd. and amounts to a total headline rent of £247,170 pa.

133 Finnieston Street, Glasgow - Horiba Ltd. has renewed its 10-year lease with a 5-year break option for £112,302 pa on 6,606 sq. ft. (£17.00 psf).

 

Linford Wood Business Park - Autotech has agreed a 10-year lease renewal for 5,427sq. ft. at a headline rent of £113,967 pa (£21.00/sq. ft.).

 

 

Forthcoming Events

 

9 September 2025
12 November 2025
Interim Results Announcement
Q3 2025 Trading Update


Note: All dates are provisional and subject to change

 

- ENDS -

 

Enquiries:

 

Regional REIT Ltd.
Press enquiries through FTI Consulting
ESR Europe Private Markets Ltd.
Tel: +44 (0) 203 831 9776
Investment Adviser to the Group
Adam Dickinson, Investor Relations, Regional REIT Ltd.
ESR Europe LSPIM Ltd.
Tel: +44 (0) 141 248 4155
Asset Manager to the Group
Stephen Inglis
Shore Capital
Tel: +44 (0) 20 7408 4050
Joint Broker and Financial Adviser
Gillian Martin, Daphne Zhang (Corporate Advisory)
Ben Canning (Corporate Broking)
Peel Hunt
Tel: +44 (0)20 7418 8900
Joint Broker and Financial Adviser
Capel Irwin, Henry Nicholls (Corporate Advisory)
FTI Consulting
Tel: +44 (0)20 3727 1000
Financial Communications
RegionalREIT@fticonsulting.com
Dido Laurimore, Giles Barrie


 

About Regional REIT

 

Regional REIT Ltd. ("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 ESR Europe LSPIM Ltd., the Asset Manager, and ESR Europe Private Markets Ltd., the Investment Adviser.

 

Regional REIT's commercial property portfolio is comprised wholly of income producing UK assets, predominantly offices located in the regional centres outside of the M25 motorway. The portfolio is geographically diversified, with 125 properties, 1,244 units and 744 tenants as at 31 March 2025, with a valuation of c.£622.8m.

                             

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.

 

LEI: 549300D8G4NKLRIKBX73

 

 

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