Source - RNS
RNS Number : 9042X
Regional REIT Limited
30 December 2019
 

 

30 December 2019

REGIONAL REIT Limited

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

 

Lettings Secured - Ahead of Expected Rental Value

 

 

Regional REIT (LSE: RGL), the regional real estate investment specialist focused on building a diverse portfolio of income producing regional UK core and core plus office and industrial property assets, today announces further successful lettings 3.0% ahead of expected rental value ("ERV"). In total the rents amount to £589,856 per annum:

Star House, Peregrine Business Park, High Wycombe: Following the recent acquisition of this six building business park extending to 46,374 sq. ft., London & Scottish Property on behalf of Regional REIT Limited has renewed the lease of Star House (9,581 sq. ft.) to Star Micronics Limited for 5 years at a headline rent of £184,450 per annum (£19.25/sq. ft.) in line with ERV subject to a tenant break option at the third anniversary.

Juniper Park, Basildon: An asset management initiative undertaken by London & Scottish Property on behalf of Regional REIT has seen Schenker Limited take a lease of the whole ground floor offices (12,851 sq. ft.) at Juniper Place on a five year term at a headline rent of £182,260 per annum (£14.18/sq. ft. and 4.9% above ERV). As part of the deal, Schenker will give up their lease of their current second floor office early in the New Year consolidating their occupancy on the ground floor.

Unit 1, Genesis Business Park, Woking: Gallagher Benefit Services Management Company Limited has taken a 10 year lease of Suite 1C (4,594 sq. ft.) subject to a break option after five years at a headline rent of £105,662 per annum (£23.00/sq. ft.).

9 Portland Street, Manchester: Imperial Office Furniture Limited has extended its lease on part of the second floor (2,518 sq. ft.) until September 2025. Under the deal the rent payable from the lease renewal in September 2020 will increase to £55,000 per annum (£21.84/sq. ft.) with a 9 month equivalent rent free period granted.

Copse Walk, Cardiff Gate Business Park, Cardiff: Unit B, Ground Floor (2,221 sq. ft.) has been let to Harrison Clark Rickerbys at a headline rent of £29,984 per annum (£13.50/sq. ft.) on a new five year lease subject to a tenant break option on the third anniversary. As a result, Regional REIT now has full occupation following the recent acquisition in September at this location.

124-136 High Street, Falkirk: Specsavers has taken a new 10 year lease at a headline rent of £32,500 per annum (£7.45/sq. ft. and 22.6% above ERV) at this retail unit (4,362 sq. ft.) which sees Regional REIT's four units now fully let at this location.

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

"Demand continues to be strong and we are very encouraged by the rental rates that we are able to achieve, ahead of ERV. This further demonstrates that we are witnessing rental growth in our portfolio on a national scale. We also have no shortage of properties to make further acquisitions and to actively manage, improve and subsequently rent out at higher levels or seek an attractive disposal rate."

"The diversity of income across the portfolio continues to grow as we expand our asset base and further enhance the quality and quantity of our rental income and expand our tenant base. We look forward to updating shareholders further on our progress in due course."

- ENDS -

Enquiries:

 

Regional REIT Limited


Press enquiries through Buchanan



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


Charles Ryland, Victoria Hayns, Henry Wilson


 

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 ("LSPIM"), the Asset Manager, and Toscafund Asset Management LLP ("Toscafund"), the Investment Manager.

Regional REIT's commercial property portfolio is comprised wholly of income producing UK assets and comprises, predominantly, offices and industrial units located in the regional centres outside of the M25 motorway. The portfolio is highly diversified, with 149 properties, 1,178 units and 828 tenants as at 30 June 2019, with a valuation of £721.7m.

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.

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.

LEI: 549300D8G4NKLRIKBX73 


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