Regional REIT Limited Attractive GBP6.3m disposal 8.6% above valuation (1839P)
June 08 2020 - 2:00AM
UK Regulatory
TIDMRGL
RNS Number : 1839P
Regional REIT Limited
08 June 2020
8 June 2020
REGIONAL REIT Limited
("Regional REIT", the "Group" or the "Company")
Attractive GBP6.3m disposal 8.6% above valuation
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 it has exchanged and completed on
the sale of Buildings 2 and 3 The Oaks, Westwood Business Park,
Coventry for GBP6.3m, reflecting a net initial yield of 6.5% and
8.6% above the latest valuation.
The c.40,000 sq. ft. office property was acquired in May 2015
for GBP3.2m, and has been sold following successful asset
management initiatives by London and Scottish Property Investment
Management Ltd., which culminated in planning approval for change
of use from commercial office to student housing.
The proceeds from the sale will be used to invest in a new
opportunity, of which Regional REIT is seeing many.
Stephen Inglis, Chief Executive Officer of London & Scottish
Property Investment Management Limited, the Asset Manager
commented:
"Having generated a high income return for the REIT since
acquisition and following the successful execution of the business
plan, which encompassed achieving planning approval for change of
use from office to student housing, a sale was agreed resulting in
a premium of 8.6% over the December 2019 valuation and delivering
an IRR of 33% over the period since acquisition.
This disposal is in-line with our ongoing strategy to identify
and purchase attractively priced assets and increase valuation
through our asset management initiatives, leading to a greater
income stream and value enhancement, or an accretive disposal."
- 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 / 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, 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,
offices and industrial units located in the regional centres
outside of the M25 motorway. The portfolio is highly diversified,
with 160 properties, 904 tenants as at 31 December 2019, with a
valuation of GBP787.9m.
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 .
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
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
DISSSFFAWESSEFM
(END) Dow Jones Newswires
June 08, 2020 02:00 ET (06:00 GMT)
Regional Reit (LSE:RGL)
Historical Stock Chart
From Jun 2024 to Jul 2024
Regional Reit (LSE:RGL)
Historical Stock Chart
From Jul 2023 to Jul 2024