Completion of £12.2m sale to Unite Students

RNS Number : 1215X

Regional REIT Limited

08 August 2018

 

8 August 2018

REGIONAL REIT Limited

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

Completes £12.2m sale of Leeds development to Unite Students

Further to the announcement on 10 November 2017, of the exchange of contracts to sell a development site in Leeds on a subject-to-planning basis to Unite Students, the Company is pleased to confirm the disposal has now completed.

The site on Merrion Way was originally acquired by Regional REIT in 2016 as part of the Wing Portfolio alongside the adjacent Arena Point office development. At that time the entire holding, including the office development, was valued at £10.5m.

Following the acquisition, London and Scottish Investments, the Asset Manager to Regional REIT, recognised the potential for the repositioning of part of this asset for alternative use, undertook an early surrender of the lease, and agreed to a joint venture with Unite Students.

Having successfully worked with Unite to obtain planning consent for a large-scale student housing development, Regional REIT has achieved a final sale price of £12.2m for the site. This is an increase on the price of £10.5m indicated in the announcement of 10 November 2017. Regional REIT retains the 19 storey Arena Point office building currently valued at £8.45m (Dec 2017).

Stephen Inglis, Chief Executive of LSI and Director of Regional REIT, commented: "We worked closely with Unite to get planning permission for the Merrion Way site, and are delighted it has now been granted. The hands-on approach we have taken with this site - from identifying its potential use as a student development, lining up a buyer and then starting the planning process - clearly demonstrates how we actively manage the portfolio to create significant shareholder value."

Nick Hayes, Group Property Director at Unite Students, added: "When this site opens in 2020 it will take our presence in Leeds to 4,470 beds, with a further development close to University of Leeds and Leeds Beckett University. Its acquisition is in line with our stated returns and reflects our strategy of aligning with high and mid-tier universities in cities where demand for student accommodation is strong."

- ENDS -

Enquiries:

Regional REIT Limited
Press enquiries through Headland
Toscafund Asset Management	Tel: [phone]
Investment Manager to the Group
Adam Dickinson, Investor Relations, Regional REIT Limited
London & Scottish Investments	Tel: [phone]
Asset Manager to the Group
Stephen Inglis
Headland	Tel: [phone]
Financial PR
Francesca Tuckett / Bryony Sym / Jack Gault

About Regional REIT

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 £737.3m 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)

 

END

 

 

DISPRMRTMBJMBRP