18 July 2018
The information contained herein may only be released, published or distributed in the United Kingdom, the Isle of Man, Jersey and the Bailiwick of Guernsey in accordance with applicable regulatory requirements. The information contained herein is not for release, publication or distribution in or into the United States, Australia, Canada, Japan, South Africa, the Republic of Ireland or in any other jurisdiction where it is unlawful to distribute this document. This announcement is released by Regional REIT Limited and contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 (MAR). For the purposes of MAR and Article 2 of the Commission Implementing Regulation (EU) 2016/1055, this announcement is made by Emma Lamb, for and on behalf of Link Company Matters Limited, Company Secretary to Regional REIT Limited.
MiFID II retail investors, professional investors and ECPs target market - Manufacturer target market (MIFID II product governance) is eligible counterparties and professional clients (all distribution channels) and also retail clients (all distribution channels).
SEE "IMPORTANT INFORMATION" BELOW
REGIONAL REIT LIMITED
LAUNCH OF 4.5 % STERLING BONDS DUE 2024
Regional REIT Limited (the "Issuer") announces that it has today launched an offer of 4.5% sterling bonds due 6 August 2024 (the "Bonds").
The Bonds will pay a fixed rate of interest of 4.5% per annum. Interest will be payable semi-annually in arrear in equal instalments.
The Bonds have a minimum initial subscription amount of £2,000 and are available in multiples of £100 thereafter.
At any time during the life of the Bonds, investors are permitted to sell the Bonds (within market hours and in normal market conditions) on the open market through their stockbroker.
The Bonds are expected to be listed on the Official List of the UK Listing Authority and admitted to trading on the regulated market of the London Stock Exchange. The Bonds are also expected to be eligible for the London Stock Exchange's electronic Order Book for Retail Bonds.
Peel Hunt LLP is acting as Lead Manager on this issue.
The Authorised Offerors are:
· AJ Bell Securities Limited
· Equiniti Financial Services Limited
· iDealing Limited
· Redmayne-Bentley LLP
The offer period is now open and is expected to close at 12 noon (London time) on 1 August 2018. The Lead Manager retains the right to close the offer early, in conjunction with the Issuer.
For further information, please contact:
Regional REIT Limited
Regional REIT Limited
Press enquiries through Headland
Peel Hunt
Henrietta Podd: +44 (0)20 3770 2604
Sanjeeb Seal: +44 (0)20 3597 8654
Headland
Francesca Tuckett, Bryony Sym, Jack Gault: +44 (0) 20 3805 4222
About the Issuer
The Issuer (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.
The Issuer is managed by London & Scottish Investments Limited (the "Asset Manager"), and Toscafund Asset Management LLP (together with the Asset Manager, the "Managers") 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 investment portfolio of the Issuer and its subsidiaries (together, the "Group"), 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 Issuer'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.
About the Bonds
· The Bonds may not be suitable for all investors. Investors should ensure they fully understand the risks and seek independent financial advice.
· Investors should note that the market price of the Bonds can rise and fall during the life of the investment and the price of the Bonds could fall below the issue price of £100.
· In the event that the Issuer or any member of the Group becomes insolvent or goes out of business, investors may lose some or all of their investment.
IMPORTANT INFORMATION
This announcement is an advertisement and is not a prospectus for the purposes of EU Directive 2003/71/EC, as amended, and/or Part VI of the Financial Services and Markets Act 2000 (the "FSMA"). A prospectus dated 18 July 2018 (the "Prospectus") has been prepared and made available to the public as required by Part VI of the FSMA. Investors should not subscribe for any Bonds referred to in this announcement except on the basis of information in the Prospectus. Full information on the Issuer and the offer of the Bonds is only available on the basis of the combination of the Prospectus and this announcement which have been published by the Issuer on the Regulatory News Service operated by the London Stock Exchange ("RNS"), and an announcement expected to be published on or around 1 August 2018 by the Issuer on RNS setting out the aggregate principal amount of the Bonds to be issued (the "Sizing Announcement"). Investors may obtain copies of the Prospectus and the Sizing Announcement (once published) on the website of RNS.
The restriction on financial promotions contained in section 21(1) of the Financial Services and Markets Act 2000 does not apply to this announcement by virtue of article 70(1A) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended.
The offering and the distribution of this announcement and other information in connection with any offer in certain jurisdictions may be restricted by law and persons into whose possession this announcement or any document or other information referred to herein comes should inform themselves about and observe any such restriction. Any failure to comply with these restrictions may constitute a violation of the securities laws of any such jurisdiction.
This announcement does not constitute or form part of any offer or invitation to sell, or any solicitation of any offer to purchase any Bonds. Any purchase of Bonds pursuant to any offer should only be made on the basis of the information contained in the Prospectus, available as described above.
The Bonds have not been and will not be registered under the United States Securities Act of 1933 (as amended) (the "Securities Act") and, subject to certain exceptions, may not be offered, sold or delivered within the United States or to or for the account or benefit of United States persons. The Bonds are being offered and sold outside of the United States in reliance on Regulation S of the Securities Act.
LEI: 549300D8G4NKLRIKBX73
