Significant Office Portfolio Acquisition - £27.7m

18 October 2019

REGIONAL REIT Limited

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

Significant Office Portfolio Acquisition for £27.7m

Regional REIT (LSE: RGL), the regional real estate investment specialist focused on building a diverse portfolio of income producing regional UK core and core plus office and industrial property assets, is delighted to announce today that it has exchanged contracts to acquire a portfolio of four office assets for a total consideration of £27.7million from a UK institutional vendor, with completion expected by the end of October.

The portfolio comprises four multi-let offices located in Redhill, Harefield, Bristol and High Wycombe. The assets total circa 131,036sq. ft. and are expected to provide a net income of approximately £2.59 million per annum from 24 tenants; equating to a net initial yield of 8.7% and anticipated reversionary yield of 9.7%. The portfolio's weighted average unexpired lease term is 3.1 years and 5.4 years to expiry.

Stephen Inglis, CEO of London & Scottish Property Investment Management, the Asset Manager, commented:

"We are pleased to have acquired this institutional quality office portfolio in southern England which is earnings accretive and offers significant potential opportunities for realising valuation uplifts from our asset management initiatives.

We continue to methodically employ our bottom up research approach to each acquisition, as we deploy the recently successfully raised funds. In light of the increasingly attractive pipeline we look forward to updating shareholders of further acquisitions in due course."

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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, offices and industrial units located in the regional centres outside of the M25 motorway. The portfolio is highly diversified, with 149 properties, 1,178 units and 828 tenants as at 30 June 2019, with a valuation of £721.7m.

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)