Regional REIT : Attractive £6.3m disposal 8.6% above valuation

8 June 2020

REGIONAL REIT Limited

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

Attractive £6.3m disposal 8.6% above valuation

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, today announces it has exchanged and completed on the sale of Buildings 2 and 3 The Oaks, Westwood Business Park, Coventry for £6.3m, reflecting a net initial yield of 6.5% and 8.6% above the latest valuation.

The c.40,000 sq. ft. office property was acquired in May 2015 for £3.2m, and has been sold following successful asset management initiatives by London and Scottish Property Investment Management Ltd., which culminated in planning approval for change of use from commercial office to student housing.

The proceeds from the sale will be used to invest in a new opportunity, of which Regional REIT is seeing many.

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

'Having generated a high income return for the REIT since acquisition and following the successful execution of the business plan, which encompassed achieving planning approval for change of use from office to student housing, a sale was agreed resulting in a premium of 8.6% over the December 2019 valuation and delivering an IRR of 33% over the period since acquisition.

This disposal is in-line with our ongoing strategy to identify and purchase attractively priced assets and increase valuation through our asset management initiatives, leading to a greater income stream and value enhancement, or an accretive disposal.'

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Enquiries:

Regional REIT Limited
Toscafund Asset Management	Tel: [phone]
Investment Manager to the Group
Adam Dickinson, Investor Relations, Regional REIT Limited
London & Scottish Property Investment Management	Tel: [phone]
Asset Manager to the Group
Stephen Inglis
Buchanan Communications	Tel: [phone]
Financial PR	[e-mail]
Charles Ryland / Victoria Hayns / Henry Wilson

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 160 properties, 904 tenants as at 31 December 2019, with a valuation of £787.9m.

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