Regional Reit Regulatory News (RGL)

21 January 2018

REGIONAL REIT Limited

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

Lettings update

Regional REIT, the UK regional office and industrial property focused real estate investment trust, today announces a series of recent letting agreements and capital recycling led activity:

· Aztec West, Bristol: The Group secured Bristol's largest letting in the out of town office market for the second quarter running in 2018. The terms of the lease see the Ministry of Defence take 32,000 sq. ft. of office space at 800 Aztec West, for a ten-year period. This represented Bristol's largest out-of-town office letting in 2018, and follows the lease agreed with Edvance SAS, which was the largest out-of-town letting in Bristol agreed in Q3 of 2018. These lettings result in 800 Aztec West being 87% let within 5 months of completing an extensive refurbishment. The building was acquired by Regional REIT in January 2016.

· Equinox North, Bristol: The Group has agreed a lease renewal of part of the ground floor (6,477 sq. ft.) of Equinox North in Bristol to Qualcomm Technologies International for a five-year period. The Group has also agreed a lease re-gear of part of the ground and first floor (6,775 sq. ft.) at a rent of £102,000 per annum to Pegasus Planning Group Limited for a five-year period.

· St James Court, Bristol: The Group has agreed two separate leases with Thomas Silvey Limited and Semtech EMEA Limited for a combined rent of £143,000 per annum, for a five-year period. Thomas Silvey has agreed to lease 5,164 sq. ft. whilst Semtech EMEA has signed a deal that expands their presence in the building by an additional 3,790 sq. ft. The pair of leases mean the development is now 90% let.

· 120 Wellington Street, Leeds: The Group has agreed terms with construction group, McLaren, who will lease 18,685 sq. ft. of office space at 120 Wellington Street, Leeds, and 22,032 sq. ft. at The Oaks, Coventry, at a combined rent of £555,000 per annum. Under the agreement, McLaren has the option to purchase both sites, subject to obtaining consent for their proposed redevelopment schemes.

· 3200 Century Way, Thorpe Park Business Park, Leeds: The Group has agreed to lease the second floor (10,736 sq. ft) at 3200 Century Way, Thorpe Park Business Park to Countryside Properties Plc at a rate of £204,000 per annum. It is currently undergoing a £2 million refurbishment, with the remaining Ground Floor due for completion by Spring 2019.

· Arena Point, Leeds: A serviced office centre of 12,000 sq. ft. was established in Arena Point at the beginning of January 2019 in partnership with Citibase. Within two weeks, 10,000 sq. ft. of the office space had been leased. The levels of enquires experienced for the remaining 2,000 sq. ft. of space may mean the size of the centre is expanded in the coming months.

Stephen Inglis, Chief Executive Officer of London & Scottish Investments Limited, Asset Manager to Regional REIT, commented: "We have had a really strong finish to 2018 and the momentum is continuing into 2019. These lettings demonstrate the strength of our vertically integrated management model which enables us to achieve maximum value from our sites. In particular, the lettings achieved in the past few months in Bristol, so soon after the completion of a significant refurbishment, is evidence of this.

"We continue to see growing demand for quality space in the regional markets, despite the political uncertainty at a national level. While we remain cautious in our outlook for the macro market, we continue our approach of micro-management and a granular, site by site focus and strategy to meet demands from tenants, and in turn return value to shareholders."

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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 30 June 2018, was spread across 151 regional properties, 1,294 units and 950 tenants. As at 30 June 2018, the investment portfolio had a value of £758.7m and a net initial yield of 6.4%. 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)