Sale agreed for The Point, Glasgow

20 June 2018

REGIONAL REIT Limited

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

Sale agreed for The Point, Hamilton Hill, Glasgow

Regional REIT, the UK regional office and industrial property focused real estate investment trust, today announces it has exchanged contracts to sell The Point Trade & Retail Park, Hamilton Hill, Glasgow for £14.1m. This reflects a net initial yield of 6.6%.

The 158,546 sq ft property was acquired in 2013 and comprises 11 individual units let on 10 separate leases. Over the five-year ownership of the property, several asset management initiatives have been instigated such as subdivision of some of the larger units to create smaller units. In addition, a series of renovations have resulted in increased rental income, which now totals £995,315 pa. The sale price represents an uplift of 5.6% against the 31 December 2017 valuation.

Completion is expected to take place in early July 2018.

Stephen Inglis, Chief Executive Officer of London & Scottish Investments Limited, the Asset Manager commented: "This sale is another example of how Regional REIT looks to take advantage of opportunities to recycle capital on properties which have met their individual asset plans. Over the last five years, we have applied our strategy of active asset management at The Point, creating a fully let and stabilised property with robust rental streams. This has resulted in us achieving strong pricing from an institutional purchaser, and given us an excellent opportunity to realise returns."

Enquiries:

About Regional REIT

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 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)

www.regionalreit.com