TIDMRGL
RNS Number : 7689R
Regional REIT Limited
02 July 2020
2 July 2020
REGIONAL REIT Limited
("Regional REIT", the "Group" or the "Company")
20.2% ERV Uplift from Asset Management Initiatives
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, is pleased to announce several new office,
warehouse and retail lease renewals and extensions as part of the
asset manager's active approach to optimising portfolio value. The
rents amount to GBP531,364 with a total uplift of 20.2% to the
estimated rental value ("ERV"), being predominately sourced from
government-designated essential service occupiers.
Solihull Parkway, Birmingham Business Park, Solihull : A new
office tenancy agreement has been signed with the tenant taking
some 4,762 sq.ft.. The lease is for 10 years until June 2030 with a
break option on 31 May 2025. Headline rent is GBP92,589 pa
(GBP19.44/sq.ft.).
Marston Moor Business Park, Tockwith, York : A new office lease
has been agreed for 11,673sq.ft.. The lease runs until June 2026
with a break option in June 2023. Headline rent is GBP79,400 pa
(GBP6.80/sq.ft.), 70.0% above the ERV.
Marston Business Park, Tockwith, York : Three new leases across
three units for use as a warehouse and distribution centre with the
tenant amounting to 9,449sq.ft.. The leases run until June 2026
with break option in June 2023. Headline rent is GBP68,000 pa
(GBP7.20/sq. ft.) for the three units, 19.9% above the ERV.
Unit 3, Acorn Business Park, Killingbeck Drive, York Road, Leeds
: The tenant, Pivot Academy Leeds Ltd., has signed a lease until
June 2025 for 3,345sq. ft. for office space, with a break option in
June 2023. Headline rent is GBP34,300 pa (GBP10.25/sq. ft.) for the
three units, 28.0% above the ERV.
Woodlands Court, Ash Ridge Road, Bristol : The office lease has
been renewed with the existing tenant for two years until June 2022
(3,584 sq. ft.). Headline rent is GBP65,520 pa (GBP18.28/sq. ft.)
for the three units, 14.3% above the ERV.
Witham Park, Waterside South, Lincoln: The office lease has been
extended for one year with the tenant until July 2021, including a
rolling break subject to 3-mths notice and a rent of GBP71,055 pa
(GBP8.96sq.ft.). Following a recent refurbishment, the tenant has
already taken 17,000 sq. ft.
York House, 102a Hamilton Road, Felixstowe : Tenant retained
beyond break and lease secured until November 2022 (1,358 sq. ft.).
Rent is set at GBP13,500 (GBP9.94sq.ft.) until November 2021 and
GBP14,000 (GBP10.31sq.ft.) thereafter.
High Street, Dumfries : The tenant has extended the lease on the
13,687 sq. ft. of retail space from 2025 to September 2029, some
65.1% above ERV.
Stephen Inglis, Chief Executive Officer of London & Scottish
Property Investment Management Limited, the Asset Manager
commented:
"Good progress is being made and today's announcement further
demonstrates that Regional REIT has a successful strategy and
model, adaptable to meet our clients' needs, even in these testing
times. The positive progress achieved as part of our ongoing asset
management plan has resulted in ERV uplifts amounting to 20.2% and
follows on from our strong Q1 rental collection previously
announced. More than ever, our close relationships with tenants and
the strength of experience in the asset management team that spans
previous financial crises, continue to be invaluable in creating
exemplary usable spaces suitable for the new environment that meet
the needs of tenants and optimise value for shareholders."
- 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
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END
MSCFZGGNKMLGGZM
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