TIDMRGL
RNS Number : 5355X
Regional REIT Limited
13 August 2018
REGIONAL REIT Limited
("Regional REIT", "the Group" or "the Company")
13 August 2018
COMPLETES GBP26.4M SALE OF WARDPARK, CUMBERNAULD
Regional REIT, the UK regional office and industrial property
focused real estate investment trust, today announces that it has
exchanged and completed the sale of multi-let industrial estate
Wardpark, Cumbernauld. The estate, acquired in 2013, covers a total
of 829,851 sq ft and is located approximately 13 miles north east
of Glasgow.
The sale price of GBP26.4m was 21.1% above the December 2017
year end valuation.
Wardpark has benefitted from a proactive asset management
strategy, which has resulted in improved occupancy and high
retention rates among tenants, approximately 30% of which have had
a presence on the estate for over 15 years. Initiatives undertaken
include the rolling refurbishment of vacant units, the creation of
a trade counter area on the estate and the re-gearing of core
holding leases. Tenants include Virgin Media Wholesale, Screwfix
and Balfour Beatty.
Stephen Inglis, Chief Executive Officer of London & Scottish
Investments Limited, the Asset Manager to Regional REIT,
commented:
"We are pleased to conclude the sale of Wardpark, which reflects
our opportunistic approach to recycling capital and supports our
strategy of downselling assets in Scotland to allow the REIT to
target acquisitions in England. It's another example of our track
record of increasing asset value through active
asset-management.
"The market continues to demonstrate robust investor demand for
multi-let industrial assets and the sector's ability to deliver
increasingly attractive returns. The sale of Cumbernauld at GBP4.6m
above its last valuation price shows again the significant
differential between valuation and the price the market is willing
to pay. We are delighted with the performance of the asset under
our ownership and look forward to recycling the capital in new
assets where we can apply our active asset management
strategies."
-Ends-
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.
For further information, please contact:
Enquiries:
Regional REIT Limited Regional REIT Limited
Press enquiries through Headland www.regionalreit.com
Press enquiries through Headland
Toscafund Asset Management Tel: +44 (0) 20 7845 6100
Investment Manager to the Group Peel Hunt
Adam Dickinson, Investor Relations, Regional REIT Limited Henrietta Podd +44 (0)20 3770 2604
Sanjeeb Seal +44 (0)20 3597 8654
London & Scottish Investments Tel: +44 (0) 141 248 4155
Asset Manager to the Group Headland +44 (0) 20 3805 4822
Stephen Inglis Bryony Sym / Jack Gault
Headland Tel: +44 (0) 20 3805 4822
Financial PR
Francesca Tuckett/ Bryony Sym / Jack Gault
About Regional REIT
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.
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
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 announcement contains inside information which is disclosed
in accordance with the Market Abuse Regulation that came into
effect on 3 July 2016.
ESMA Legal Entity Identifier ("LEI"): (549300D8G4NKLRIKBX73)
www.regionalreit.com
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contact rns@lseg.com or visit www.rns.com.
END
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