Regional REIT Limited Sale of Cheshunt Office & First Letting for Aztec (1936A)
10 September 2018 - 4:00PM
UK Regulatory
TIDMRGL
RNS Number : 1936A
Regional REIT Limited
10 September 2018
10 September 2018
REGIONAL REIT Limited
("Regional REIT", "the Group" or "the Company")
REGIONAL REIT COMPLETES GBP17.25m SALE OF CHESHUNT OFFICE SITE
AND AGREES FIRST LETTING FOR AZTEC WEST
Regional REIT (LSE:RGL), the UK regional office and industrial
property focused real estate investment trust, today announces it
has exchanged and completed on the sale of Turnford Place, Great
Cambridge Road, Cheshunt for GBP17.25m. This reflects a net initial
yield of 5.8%.
The 59,176 sq. ft. modern office block site was originally
acquired by Regional REIT on 27 December 2017 as part of the Newton
portfolio. At that time, the office development was valued at
GBP14.3m. The sale price marks an uplift of 20.6% against the 31
December 2017 valuation.
This week also saw the first letting of space at 800 Aztec West
in Bristol. The Aztec West site, which comprises 73,000 sq. ft. of
office space in total, was acquired in January 2016 as part of the
Rainbow portfolio.
Regional REIT has overseen a comprehensive GBP6.9m refurbishment
of the site, which includes full re-cladding, a new double height
fully glazed entrance and atrium reception, shower facilities,
cycle storage and electric vehicle charging points amongst other
improvements including the enhancement of the energy efficiency of
the building to a "B" rating.
Under the ten-year agreement, Edvance SAS will lease 31,000 sq.
ft. at a headline rental rate of GBP21.50/sq. ft.. Regional REIT
have worked with Edvance to provide flexibility around lease
durations on the space with provisions for breaks and
incentives.
Stephen Inglis, Chief Executive Officer of London & Scottish
Investments Limited, the Asset Manager to Regional REIT, commented:
"Both these transactions demonstrate our active approach to
portfolio and asset management. With Cheshunt, we again saw an
opportunity to realise returns at a significant premium to the
property 31 December 2017 valuation. In line with our business
strategy, we will look to redeploy the proceeds into acquiring
other assets where we can add value and thereby drive yields."
"At Aztec West, we took the rare decision to take on a fairly
large renovation project because there was clear market demand and
a lack of quality office space in the area. Consequently, we have
significantly driven the rental value, which will in turn improve
valuation and yield."
- ENDS -
Enquiries:
Regional REIT Limited
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 PR Consultancy LLP Tel: +44 (0) 20 3805
4822
Financial PR
Francesca Tuckett / Jack Gault
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 (together the "Managers") 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.
ESMA Legal Entity Identifier ("LEI"): (549300D8G4NKLRIKBX73)
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END
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