Regional REIT Limited Regional REIT successfully raises £50m (9827W)
August 07 2018 - 2:00AM
UK Regulatory
TIDMRGL
RNS Number : 9827W
Regional REIT Limited
07 August 2018
7 August 2018
REGIONAL REIT
("Regional REIT", "the Group" or "the Company")
SUCCESSFULLY RAISES
GBP50 MILLION IN BOND ISSUE
Bonds admitted to trading on London Stock Exchange today
Regional REIT, the UK regional office and industrial property
focused real estate investment trust, today announces, following
the successful raise of GBP50 million in a bond issue, the
admission of the bonds to trading on the London Stock Exchange.
The bonds will pay interest at an annual rate of 4.5% and mature
on 6 August 2024.
The new capital will be used by Regional REIT to repay the
Group's most expensive and earliest maturing debt, the 6.5% Zero
Dividend Preference Shares ("ZDPs") which were acquired as part of
the Conygar portfolio acquisition on 24 March 2017. The ZDPs, which
are traded on the London Stock Exchange, are due to be redeemed on
9 January 2019. At the time of maturity, it is expected that the
ZDPs will have a liability of GBP39.9m.
The remaining capital will be used towards further reducing the
cost of Regional REIT's borrowings.
Stephen Inglis, Chief Executive Officer of London & Scottish
Investments Limited, the Asset Manager to Regional REIT,
commented:
"We are very pleased with the response to the bond issue, which
will allow us to significantly reduce the cost of our debt and
extend the average maturity. This capital will cover not only the
liabilities associated with the ZDP shares, but also enable us to
reduce additional higher cost debt facilities."
"Regional REIT has had an active 18 months and these
developments further build on the momentum and position the REIT
well for the next stage of its growth."
"We continue to see good opportunities in the regional property
market and look forward to further progressing the REIT and
delivering value to our investors."
-ENDS-
Notes to Editors
For further information, please contact:
Enquiries:
Regional REIT Limited
www.regionalreit.com
Press enquiries through Headland
Peel Hunt
Henrietta Podd +44 (0)20 3770 2604
Sanjeeb Seal +44 (0)20 3597 8654
Headland +44 (0) 20 3805 4822
Francesca Tuckett / Bryony Sym / Jack Gault
About Regional REIT
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
ESMA Legal Entity Identifier ("LEI"): 549300D8G4NKLRIKBX73
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.
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
IODQQLFBVVFZBBD
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