TIDMRGL
RNS Number : 5298D
Regional REIT Limited
20 February 2020
20 February 2020
REGIONAL REIT Limited
("Regional REIT", the "Group" or the "Company")
Potential Equity Fundraise for Accretive Growth
Opportunities
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 that it is considering an equity
fundraise. The proceeds will be used to take advantage of its
growing near term pipeline of accretive growth opportunities in the
investment market.
Occupational take-up in the Group's properties remains robust,
which coupled with an experienced hands-on asset manager delivering
successful asset management initiatives, has resulted in the
diversified income portfolio continuing to expand. As announced on
29 January 2020, the portfolio was valued at GBP787.9m as at 31
December 2019, an increase of 9.7% during 2019, reflecting
acquisitions made in the period. The like-for-like value of the
Group's core office and industrial segment (93.6% by value) also
increased in 2019 by 1.4%. Portfolio valuation was broadly
unchanged on a like for like basis with a 0.1% decrease.
The successful June 2019 equity capital raise targeted GBP50.0m
and was substantially oversubscribed at GBP62.5m. The funds have
all been invested ahead of schedule in 11 high quality office
assets for a total of GBP63.9 million producing a combined net
initial yield of 8.7%, further diversifying the portfolio:
-- August 2019, GBP25.9m acquisition of six offices located
Birmingham, Bristol, Cardiff, Chester, Glasgow and Manchester. The
assets total circa 172,442 sq. ft. providing a net income of c.
GBP2.36 million p.a. from 27 tenants; equating to a net initial
yield of 8.87% and anticipated reversionary yield of 9.54%.
-- October 2019, GBP27.7m acquisition of four multi-let offices
located in Redhill, Harefield, Bristol and High Wycombe. The assets
total circa 131,036 sq. ft. providing a net income of c. GBP2.59
million p.a. from 24 tenants; equating to a net initial yield of
8.7% and anticipated reversionary yield of 9.7%.
-- December 2019, GBP10.3m acquisition of a blue chip company
headquarters located in Edinburgh. The office asset comprises
43,676 sq. ft., with a current contracted rent of GBP880,000 p.a.
and a net initial yield of 8.0%.
The asset manager continues to see a growing near term pipeline
of accretive growth investment opportunities which would further
de-risk the portfolio by sector, region, and tenant type, whilst
providing asset management potential.
The funds would be deployed in line with the Group's investment
policy with a view to delivering further value to shareholders.
Any such equity fundraise is expected to follow the publication
of a prospectus, with further announcements to follow in due
course.
As previously announced, forthcoming events:
27 February 2020 Q4 2019 Dividend Declaration
26 March 2020 Full Year 2019 Preliminary Results Announcement
There will be a briefing for analysts at 9:30am on 26 March 2020
at the Buchanan offices, 107 Cheapside, EC2V 6DN. To request
attendance please contact regional@buchanan.uk.com
- 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
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