REGIONAL REIT
("Regional REIT", "the Group" or "the Company")
£52.4m refinancing agreed with Santander UK
Regional REIT Limited (LSE: RGL) is pleased to announce today that it has agreed a new £52.4 million secured facility ("The New Facility") with Santander UK.
The New Facility has a 5-year term maturing in November 2022, and replaces, at a competitive rate, the current three-year debt facility with Santander UK of £47.8 million, which was due to mature in December 2018.
As mentioned in the trading update earlier this month, The New Facility, when coupled with the credit approved 10-year secured facility which is in late stage discussions, the weighted average debt maturity will increase to 6.3 years from 2.0 years. The Group cost of borrowing, including hedging fees, and LTV, will remain at c. 3.7% and c. 48% respectively.
Stephen Inglis, Chief Executive Officer of London & Scottish Investments, the Asset Manager of Regional REIT, commented: "It is a testament to the growing interest in the regional office and industrial sector, and to our business model, that we have been able to refinance on such competitive terms. We are delighted to have the opportunity to continue to work with Santander UK and look forward to strengthening our close working relationship over the coming years.
"The last six months have been busy, both in terms of portfolio activity and corporate developments. This refinancing, together with the recent appointment of Simon Marriott, demonstrates the steps we are taking to position Regional REIT for its 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.
London & Scottish Property is a wholly-owned subsidiary of London & Scottish Investments Limited, the Asset Manager to Regional REIT Limited, providing property and asset management services.
