Regional REIT Limited Acquisition of £31.4m regional portfolio (0876Y)
August 17 2018 - 2:00AM
UK Regulatory
TIDMRGL
RNS Number : 0876Y
Regional REIT Limited
17 August 2018
REGIONAL REIT Limited
("Regional REIT", "the Group" or "the Company")
17 August 2018
ACQUISITION OF GBP31.4 MILLION REGIONAL PORTFOLIO
Regional REIT, the UK regional office and industrial property
focused real estate investment trust, today announces it has
exchanged and completed on contracts to purchase eight assets for a
consideration of GBP31.4 million.
The portfolio consists of eight offices located in Hull, High
Wycombe, Stockton-on-Tees, Ipswich, Clevedon, Wakefield, Deeside
and Lincoln. The assets total circa 275,000 sq. ft., let to 24
tenants.
The assets are expected to provide a net income of approximately
GBP2.81 million per annum, which equates to a net initial yield of
8.66%.
Stephen Inglis, Chief Executive Officer of London & Scottish
Investments Limited, the Asset Manager to Regional REIT,
commented:
"This acquisition once again highlights our disciplined approach
to capital management, with disposal proceeds being promptly
redeployed ensuring minimal cash drag. The difference between the
yields of this portfolio and that of recently disposed assets
provided us with a clear arbitrage opportunity and highlights our
policy of making income accretive acquisitions.
"In addition, the portfolio, which presents good asset
management opportunities, complements our existing income streams
and further diversifies both our tenant base and our exposure to
different regions."
-Ends-
For further information, please contact:
Enquiries:
Regional REIT Limited
www.regionalreit.com
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
Francesca Tuckett / Bryony Sym / Jack Gault
Notes to Editors
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.
As at 31 December 2017, Regional REIT's investment portfolio,
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, with a combined contracted rent roll of GBP61.9
million per annum reflecting a net initial yield of 6.5% on a
weighted average unexpired lease term of around five years.
Regional REIT's investment objective is to deliver an attractive
total return to its shareholders, with a strong focus on income. It
pursues this investment objective by following an investment
strategy involving active property management and prudent use of
debt finance.
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
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