REG - Regional REIT Ltd - Positive Letting Update

Regional REITAnnouncement

01/05/2024 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20240501:nRSA7047Ma&default-theme=true

RNS Number : 7047M  Regional REIT Limited  01 May 2024

1 May 2024

REGIONAL REIT Limited

("Regional REIT" the "Group" or the "Company")

Positive Letting Update

Delta 1200, Swindon and Bennett House, Stoke-on-Trent

Fully Occupied, both Ahead of Estimated Rental Value

 

Regional REIT Limited (LSE: RGL), the regional workspace specialist, is
pleased to announce two new lettings at Bennett House, Stoke-on-Trent and
Delta 1200, Delta Business Park, Swindon. The buildings are both modern and
sought after office properties and are now 100% occupied, providing an
aggregate rental income of £0.8 million per annum.

 

This follows the successful letting of previously vacant units: Bennett House
(46,183 sq. ft.) of 7,511 sq. ft to NHS Property Services Ltd. for 5 years
with a break option in March 2027, at a rent of £95,000 (£12.65/ sq. ft.),
9.8% ahead of ERV; and at Delta 1200 (20,178 sq. ft.) a letting of 9,776 sq.
ft. has been leased to the life sciences sector for 10 years with the option
to break in February 2029, at a rent of £185,744 (£19.15/ sq. ft.), 8.6%
ahead of ERV.

 

Bennett House occupies a prominent main roadside location with excellent
access to the town centre and surrounding amenities and is arranged over
ground floor and two upper floors, with 161 car park spaces providing an
excellent town centre parking ratio of 1:290 sq ft.. The property was subject
to a comprehensive refurbishment completed in 2019 resulting in the letting
32,514 sq. ft. to The Secretary of State for Housing, Communities and Local
Government and 6,620 sq. ft. to the Valuation Office. This latest letting sees
the property fully occupied. The property has an EPC B rating.

Delta 1200 comprises a detached office building arranged over two floors
extending to 20,178 sq. ft.. The property benefits from 85 car parking spaces,
providing a parking ratio of 1:244 sq. ft.. The fully let status of the
building follows a refurbishment of the ground floor and installation of a new
VRF system that saw existing tenant TM Group (UK) Ltd. re-gear their lease for
a further 10 years with a break at year five, at a rental income of £187,236
(£18.00/ sq. ft.). Following completion of refurbishment works, the EPC for
the property also improved from B to A.

 

 

Stephen Inglis, CEO of London & Scottish Property Investment Management,
Asset Manager commented:

 

"We are pleased to see further letting progress with this announcement of both
Bennett House and Delta 1200 achieving fully let status at rentals well ahead
of ERV. Our ongoing active programme of improving our assets has helped us
secure new high-quality tenants and in turn bolstered the overall properties
occupancy and rental income. These lettings are testament to an improving
regional office market and demonstrates demand for our high quality assets."

 

Forthcoming Events

 

 22 May 2024        May 2024 Trading Update and Outlook Announcement
                    Q1 2024 Dividend Declaration Announcement
 10 September 2024  Interim Results Announcement

 13 November 2024   Q3 2024 Trading Update

 To be confirmed    Annual General Meeting

 

- ENDS -

 

 

Enquiries:

 

 Regional REIT Limited
 Press enquiries through Buchanan

 ARA Europe Private Markets Limited                      Tel: +44 (0) 203 831 9776
 Investment Adviser to the Group
 Adam Dickinson, Investor Relations

 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
 Charles Ryland, Henry Wilson, George Beale

 

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 ARA Europe Private Markets, the Investment Adviser.

Regional REIT's commercial property portfolio is comprised wholly of income
producing UK assets and comprises, predominantly of offices located in the
regional centres outside of the M25 motorway. The portfolio is geographically
diversified, with 144 properties, 978 occupiers as at 31 December 2023, with a
valuation of c.£700.7m.

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 (http://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 (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  UPDIMMLTMTTJBAI