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6 Apr 2016 09:30
6 April 2016
Regional REIT Limited
Asset Disposals, Letting Update and Forthcoming Announcement Dates
Regional REIT Limited (LSE: RGL) ("Regional REIT" or the "Group"), the recently listed regional commercial property company, today announces the sale of two assets.
Blythswood House, 200 West Regent Street, Glasgow, has been sold to Standard Life Investments for £17.4m, reflecting a net initial yield of 5.0%. The property was acquired in 2014 and then the previous lease was surrendered with a back-to-back letting-on a 25-year lease to Glasgow School of Art as a student residence. This represents a profit to the Group on acquisition and construction costs of over 60%, and is in line with the valuation at June 2015.
Unit A, Spectrum Business Park, Wrexham, a standalone industrial unit let to Calypso Soft Drinks on a lease until October 2020. The property has been sold for £4.1m, reflecting a net initial yield of 8.5%, 22% higher than the valuation at June 2015.
In addition Regional REIT has completed a new 10-year agreement with Regus for 30,000 sq.ft. of floor space at Tay House, 200 Bath Street, Glasgow. Regus will take a Management Agreement for their Spaces Concept which will be the first in the UK outside of London and only the fifth worldwide. The Management Agreement will produce a rent of c. £750,000 net per annum when fully occupied. The quality of the building and location has proven attractive to Regus for their Spaces Concept. This leaves available to let only c. 20,000 sq.ft. of the 157,000 sq.ft. Grade A office building.
Forthcoming Announcement Dates for 2016
Full Year 2015 Results Announcement | 19 April 2016 |
Q1 2016 Dividend Announcement/AGM Statement/Trading Update | 27 May 2016 |
Q2 2016 Dividend Announcement | 1 September 2016 |
Half Year 2016 Results Announcement | 20 September 2016 |
Q3 2016 Dividend Announcement/Trading Update | 17 November 2016 |
Note: all future dates are provisional and subject to change and are based on the Group's understanding of forthcoming regulatory changes that are to be implemented. Future dividends are subject to the Group's solvency.
- ENDS -
Enquiries:
Regional REIT Limited | |
Press enquiries through Headland | |
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London & Scottish Investments | Tel: +44 (0) 141 248 4155 |
Asset Manager to the Group |
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Stephen Inglis |
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Derek McDonald |
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Toscafund Asset Management | Tel: +44 (0) 20 7845 6100 |
Investment Manager to the Group |
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James S Johnson Nigel Gliksten |
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Headland | Tel: +44 (0)20 7367 5222 |
Financial PR | |
Francesca Tuckett | |
About Regional REIT (Unaudited)
Regional REIT Limited (LSE: RGL) is a London Stock Exchange Main Market listed specialist real estate investment company focused on office and industrial property interests in the principal regional locations of the United Kingdom outside of the Greater London area.
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 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 2015, is spread across more than 130 regional properties consisting of around 720 individual units, with over 500 tenants. As at 31 December 2015, the investment portfolio had a value of £403.7m and an overall income yield of 8.3%. The weighted average unexpired lease term is just under six years.
The Group's shares joined the Official List of the Financial Conduct Authority ("FCA") and admitted to trading on the London Stock Exchange ("LSE") on 6 November 2015 as LSE: RGL. For more information, please visit the Group's website at www.regionalreit.com
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