10.1% Yielding Business Park Acquisition

9 December 2020

REGIONAL REIT Limited

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

10.1% Yielding Acquisition

of Beeston Business Park, Nottingham for £16.4m

Regional REIT (LSE: RGL), the regional office specialist focused on building a portfolio of income producing regional UK core and core plus office property assets, is pleased to announce that it has completed the purchase of Beeston Business Park, Technology Drive, Nottingham, for a consideration of £16.4m (the "Acquisition").

The out-of-town site comprises 220,274 sq. ft. of internal space, including a flagship multi-let two floor office building on a total site of 26.5 acres. The business park benefits from excellent transport links being adjacent to the Beeston Train Station which has direct connectivity to London St. Pancras International, and is located four miles from Nottingham city centre. Additionally, East Midlands Airport is located only 12 miles to the south west of the business park.

The tenants include Metropolitan Housing Trust, Worldwide Clinical Trials Ltd., and Heart Internet Ltd. (trading as GoDaddy). The rent of circa £1.5m per annum, reflects a net initial yield of 10.1%, with a weighted average unexpired lease term of 11.1 years to expiry and 7.8 years to the first break.

Stephen Inglis, Chief Executive Officer of London & Scottish Property Investment Management Limited, the Asset Manager commented:

"We are delighted that the Company has made a further accretive acquisition, which has been partially funded by recycled sales proceeds. To acquire such a high quality and income producing asset management opportunity is quite an achievement in the current market environment. The yield of 10.1% reflects a substantial uplift against the 4.8% yield which was generated from Juniper Park, Basildon, recently sold for £32.7m.

The business park is well positioned in one of the UK's top 15 cities with excellent transport links and it also increases our regional diversification. In addition, the Acquisition offers the potential execution of a number of near term asset management initiatives. These attributes make it a good fit with our specialised asset management platform and offers both short and medium term income and capital growth opportunities.

As recently announced, the Company is investing its resources in cementing its position as a pre-eminent regional office specialist that consistently offers long term capital growth whilst maintaining a quarterly dividend."

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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 units located in the regional centres outside of the M25 motorway. The portfolio is highly diversified, with 150 properties, 857 tenants as at 30 September 2020, with a valuation of £739.9m.

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