Regional REIT Limited Acquisition of ?35.2 million regional portfolio (7923M)
May 02 2018 - 2:00AM
UK Regulatory
TIDMRGL
RNS Number : 7923M
Regional REIT Limited
02 May 2018
2 May 2018
Regional REIT Limited
Acquisition of GBP35.2 million regional portfolio
Regional REIT Limited (LSE: RGL) ("Regional REIT", "the Group"
or "the Company"), the UK regional office and industrial property
focused REIT, today announces it has exchanged contracts to
purchase six regional assets from Kildare Partners for GBP35.2
million in an off market transaction. This is expected to provide a
net income of c. GBP3.1 million per annum which equates to a net
initial yield of 8.4% and further utilises the proceeds of the
fundraise in December 2017.
The portfolio consists of five regional offices and one
office/distribution property located in Telford, Rotherham,
Macclesfield, Dundee, Chelmsford and Bedford. The assets total
circa 320,000 sq. ft. let to 12 tenants including NHS Property
Services Ltd., Swiss Precision Diagnostics, Capgemini, Elior UK
Services Ltd., Royal Bank of Scotland plc. and The Scottish
Ministers.
Completion will take place towards the end of June 2018.
Stephen Inglis, Chief Executive Officer of London & Scottish
Investments Limited, the Asset Manager commented: "The acquisition
of this portfolio provides us with another set of complimentary
income streams and further diversifies our tenant base. This off
market acquisition complements our existing portfolio and
strengthens our offer in several regional markets where we see good
occupational demand."
This announcement contains inside information which is disclosed
in accordance with the Market Abuse Regulation that came into
effect on 3 July 2016.
Enquiries:
Regional REIT Limited
Press enquiries through Headland
Toscafund Asset Management Tel: +44 (0) 20 7845 6100
Investment Manager to the Group
Adam Dickinson, Investor Relations, Regional REIT Limited
London & Scottish Investments Tel: +44 (0) 141 248 4155
Asset Manager to the Group
Stephen Inglis
Headland Tel: +44 (0) 20 3805 4822
Financial PR
Bryony Sym / Jack Gault
About Regional REIT
About Regional REIT Regional REIT Limited (LSE: RGL) is a London
Stock Exchange Main Market traded specialist real estate investment
trust focused on office and industrial property interests in the
principal regional locations of the United Kingdom outside of the
M25 motorway.
Regional REIT is managed by London & Scottish Investments,
the Asset Manager, and Toscafund Asset Management, the Investment
Manager, and was formed by the combination of two existing funds
previously created by the Managers as a differentiated play on the
expected recovery in UK regional property, to deliver an attractive
total return to Shareholders and with a strong focus on income.
The Group's investment portfolio, as at 31 December 2017, was
spread across 164 regional properties, 1,368 units and 1,026
tenants. As at 31 December 2017, the investment portfolio had a
value of GBP737.3m and a net initial yield of 6.5%. The weighted
average unexpired lease term to first break was 3.5 years.
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.
www.regionalreit.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
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