REGIONAL REIT
("Regional REIT", the "Group" or the "Company")
Disposal of
- Office Sale achieved at 11.4% above book value -
Regional REIT Limited (LSE: RGL) announces the successful completion of the disposal of Clearblue Innovation Centre in Bedford, having fulfilled its asset management objectives, for a total consideration of £8.8 million (before costs), representing an 11.4% premium over the 30 June 2025 book value.
A lease extension to September 2033 has already been agreed, ahead of £0.7m accretive asset management works concluding October 2025 . Upon completion, the EPC rating will be improved to a B, up from an F at acquisition. These enhancements have resulted in a value improvement of £2.3m .
The property is currently leased to SPD Development Company Ltd , which operates within the professional, scientific, and technical activities sector. The property comprises 58,167 sq. ft. of lettable space, generating a headline rent of £860,000 per annum and delivering a net initial yield of 9.16%.
Proceeds from the transaction will be used to reduce debt and further strengthen the Company's balance sheet.
Stephen Inglis , CEO of London & Scottish Property Investment Management , the Asset Manager, commented:
"This disposal demonstrates the success of our active asset management strategy, delivering an 11.4% premium over book value and enhancing the quality of our portfolio. The improvements made to the Clearblue Innovation Centre, including a lease extension and EPC upgrade, have significantly increased its value. The proceeds will further strengthen our balance sheet and position us to continue creating value through disciplined capital allocation and selective asset sales."
- ENDS -
Enquiries:
|
|
|
|
Press enquiries through |
|
|
|
|
|
|
Tel: +44 (0) 203 831 9776 |
|
Investment Adviser to the Group |
|
|
|
|
|
|
|
|
|
Tel: +44 (0) 141 248 4155 |
|
Asset Manager to the Group |
|
|
|
|
|
|
|
|
|
Tel: +44 (0)20 3727 1000 |
|
|
|
|
|
|
About Regional REIT
Regional REIT's commercial property portfolio is comprised wholly of income producing
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
LEI: 549300D8G4NKLRIKBX73
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the