New £165m 10 year facility agreed

RNS Number : 0876Z

Regional REIT Limited

12 December 2017

 

REGIONAL REIT

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

New £165m 10 year facility agreed

Simplifies debt profile and increases average maturity to over 6 years

Regional REIT Limited (LSE: RGL) is pleased to announce today it has agreed a new £165m secured 10-year facility ("The New Facility") with Scottish Widows Limited and Aviva Investors Real Estate Finance, arranged by Bank of Scotland plc.

The New Facility replaces five existing secured debt facilities thereby reducing the number of Group debt facilities from nine to five. It also increases the average maturity of the group debt to 6.2 years from 2.5 years.

The New Facility has a very competitive fixed rate which will be set on the date of drawdown and is anticipated to be 330 bps to 340 bps, resulting in the Group cost of borrowing, including hedging, remaining at c.380 bps.

This refinancing follows the recently announced £52.4m 5-year facility agreed with Santander UK.

Stephen Inglis, Chief Executive Officer of London & Scottish Investments, the Asset Manager of Regional REIT, commented: "This refinancing simplifies our balance sheet, lengthens the average maturity of our debt, and better aligns our financing arrangements to our real estate strategy. The two refinancings announced in the last two weeks and the proposed transaction announced on 4 December, demonstrate the momentum building at Regional REIT as we enter the next stage of growth."

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Enquiries:

Headland

Francesca Tuckett / Bryony Sym / Jack Gault / - 0203 805 4822

About Regional REIT

Regional REIT Limited (LSE: RGL) ("Regional REIT", the "Group" or the "Company") 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 2017, was spread across 150 regional properties, 1,093 units and 823 tenants. As at 30 June 2017, the investment portfolio had a value of £640.4m and a net initial yield of 6.7%. 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.

 

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