TIDMRGL
RNS Number : 8915L
Regional REIT Limited
05 May 2020
5 May 2020
REGIONAL REIT Limited
("Regional REIT" or the "Company")
Positive Rent Collection & Asset Management Update
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 further positive rent collection
progress, an asset management update and an attractive
disposal.
Rent Collection Update
Regional REIT is pleased to provide a further update on the good
progress achieved by our active asset management strategy in
continuing to secure high levels of rent collection, despite the
unprecedented current market conditions. As at 1 May 2020, 92.8%
had been collected in total, which compares favourably with 91.6%
rent collection at the same date in 2019. This comprised of 87.2%
of our Q1 2020 rents due and agreed collections from occupiers who
are now settling monthly amounting to 5.6%. In addition, we have
agreed temporary rent holidays with repayment plans on an
additional 1.3%. We continue discussions with tenants on the
remaining outstanding element and expect to increase the collection
amount in the next few weeks.
Asset Management Update
The Company's Asset Manager, London & Scottish Property
Investment Management, has continued to successfully manage the
assets proactively, and the Company provides the following update
on further good progress:
Elmbridge Court, Gloucester: Frazer-Nash Consultancy Ltd. has
renewed its leases of Unit C1 and C2 of the property (4,925 sq.
ft.) for a further five years from September this year at a rent of
GBP85,000 per annum (GBP17.26/sq. ft.), an uplift of 38% against
the previous rent.
Oakland House, Talbot Road, Stretford, Greater Manchester: The
existing tenant, Greater Manchester Combined Authority, has renewed
its lease of the 8(th) Floor (East Wing) of the office property
(5,481 sq. ft.). The annual rent is GBP63,032 per annum
(GBP11.50/sq. ft.), which is a 27% uplift to the previous rental
agreement.
Part Ground Floor, Betchworth House, Redhill: Current tenant Man
Energy Solutions UK Ltd. has renewed the existing lease of the
1,778 sq. ft. office unit for a further five years at a rent of
GBP42,000 per annum (GBP23.62/sq. ft.), a 12% uplift against the
previous rent.
North Malting & North Kiln, Felaw Street, Ipswich, Suffolk:
KCOM Group Ltd. has re-geared its existing lease for the second
floor of the office property (11,897 sq. ft.), at a rent of
GBP92,000 per annum (GBP7.73/sq. ft.), with the tenant's break date
having now moved out two years to 28 September 2022.
Gyleview House, 3 Redheughs Rigg, Edinburgh: Existing tenant
Citibase, has renewed the current lease for occupancy of the entire
serviced office property (24,503 sq. ft.) for a further 5
years.
Braidhurst House, Lark Way, Strathclyde Business Park, and
Bellshill: New letting to ADT Fire and Security PLC on the ground
floor office premises (8,416 sq. ft.) at a rent of GBP109,408 per
annum (GBP13.00/sq. ft.) for five years.
Commercial Street and Wellington Arcade, Brighouse: Costa Coffee
Ltd. has signed a new lease for 10 years for 3,170 sq. ft. of
previously vacant retail space at a rent of GBP40,000 per annum
(GBP12.62/sq. ft).
Disposal above valuation
Sheldon Court, Wagon Lane, Birmingham: The office asset
purchased in 2013 has been sold, following the expiration of the
occupational leases, at an attractive price of GBP2,408,400. This
represents a positive uplift of 7% above the 31 December 2019
valuation.
Stephen Inglis, CEO of London & Scottish Property Investment
Management, the Asset Manager of Regional REIT commented:
"We are encouraged that having positioned the Company well
through active asset and micro property management and given our
established close relationships with tenants we are making real
progress despite the current market environment. Our ongoing
strategy is reinforced by the strength of our rental income
collection even in today's market.
The strategy of diversification, through our number of
properties (160), units (1,251), quality and number of individual
tenants (904), regional geographical spread and the broad range of
services our tenants provide has continued to serve us well, with
high tenant quality and no one tenant comprising more than 2.5% of
rental income. We continue to maintain a low LTV with longer term
fixed or hedged debt which positions us well in the current
conditions.
Today we announce further positive benefits of our proactive
asset management strategy with a number of rental increases for Q1
and Q2 progressing as planned. We look forward to continuing to
provide further updates in due course."
- 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 787.9m.
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)
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
MSCGZGGKGDLGGZZ
(END) Dow Jones Newswires
May 05, 2020 05:21 ET (09:21 GMT)
Regional Reit (LSE:RGL)
Historical Stock Chart
From Jun 2024 to Jul 2024
Regional Reit (LSE:RGL)
Historical Stock Chart
From Jul 2023 to Jul 2024