24 July 2021

REGIONAL REIT Limited

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

Completion of £45m Industrial Portfolio Disposal

Regional REIT Limited (LSE: RGL), the UK regional office specialist, is today pleased to announce it has completed on the previously announced disposal of a portfolio of industrial property assets for £45.0m.

As announced on the 21 July 2021, the Company exchanged on the disposal of seven industrial properties (801,787sq.ft.) located in Bromborough, Erith, Nottingham, Scunthorpe, Telford, Winsford and Wisbech. The properties benefited from several asset management initiatives which assisted in improving occupancy rates, rental income and in turn capital values. The sale was completed 7.5% above the Company's 31 December 2020 valuation and at an uplift of 18.0% from the acquisition price after capital expenditure costs.

It is anticipated that the proceeds from the disposal will be promptly recycled into the Group's strong pipeline of higher yielding regional office investments to further diversify the portfolio by geography and income stream and to take advantage of what the manager sees as highly attractive valuations in this market segment for assets with significant capital growth potential.

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About Regional REIT

Regional REIT Limited ("Regional REIT" or the "Company") and its subsidiaries (the "Group") is a United Kingdom ("UK") based real estate investment trust that launched in November 2015. It is managed by London & Scottish Property Investment Management Limited, the Asset Manager, and Toscafund Asset Management LLP, the Investment Manager.

Regional REIT's commercial property portfolio is comprised wholly of income producing UK assets and comprises, predominantly of offices located in the regional centres outside of the M25 motorway. The portfolio is geographically diversified, with 153 properties, 874 occupiers as at 31 March 2021, with a valuation of £734.7m.

Regional REIT pursues its investment objective by investing in, actively managing and disposing of regional core and core plus property assets. It aims to deliver an attractive total return to its Shareholders, targeting greater than 10% per annum, with a strong focus on income supported by additional capital growth prospects.

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