Completes £39.1m industrial portfolio disposal

2 July 2018

REGIONAL REIT Limited

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

Completes £39.1m industrial portfolio disposal

Regional REIT, the UK regional office and industrial property focused real estate investment trust, today announces it has exchanged and completed on the disposal of an industrial property portfolio for £39.1m. This reflects a net initial yield of 6.9%.

The sold industrial portfolio comprised of 15 industrial property assets, 54 units, and 42 tenants amounting to 610,620 sq ft.

The sale price represents an uplift of 24.1% against the 31 December 2017 valuation.

Over the ownership of the portfolio, several asset management initiatives have been instigated which have improved occupancy rates and rental income such as a series of renovations, and the subdivision of some of the larger units.

Stephen Inglis, Chief Executive Officer of London & Scottish Investments Limited, the Asset Manager commented: "This disposal is a further example of Regional REIT's opportunistic approach. The current investor demand for industrial assets provides us with the opportunity to realise returns at a significant premium to the property valuation, and recycle capital into other assets where we can apply our active asset management strategies."

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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.

This announcement contains inside information which is disclosed in accordance with the Market Abuse Regulation that came into effect on 3 July 2016.

ESMA Legal Entity Identifier ("LEI"): (549300D8G4NKLRIKBX73)

www.regionalreit.com