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 further successful lettings some 5.5% ahead of expected rental value, amounting to £486,691 per annum:
Century Way, 3200 Thorpe Park, Leeds: Following the successful refurbishment of this 31,805 sq. ft. office by London & Scottish Property, on behalf of Regional REIT, which is located on this prestigious office park, the final remaining space of 10,550 sq. ft. on the ground floor has been let to Marlow Foods Limited trading as Quorn Foods. The lease is for a 10 year term with break at the fifth anniversary at a headline rent of £211,600 pa (£20 per sq. ft.) following earlier lettings to Sodexo and Countryside Properties.
9 Portland Street, Manchester: Two leases have been renewed with existing occupiers, Simard Limited (5th floor 5,725 sq. ft.) and Taste Marketing Limited (6th floor 4,377 sq. ft.). Both are for 10 years subject to a break option on the fifth anniversary at a revised combined rental of £207,091 pa.
Templeton Business Centre, Glasgow: The fourth floor of the Doges property, comprising a 5,746 sq. ft. office has been let to Cornerstone Community Care for five years at a headline rate of £68,000 pa. The Regional REIT property at Templeton is now almost fully let with just the 7,204 sq. ft. remaining to fill.
Stephen Inglis, CEO of London & Scottish Property Investment Management, the Asset Manager, commented:
"These lettings represent further positive progress.
Demand continues to be strong for our assets and we are very encouraged by the rental rates that we are able to achieve which once again are significantly ahead of our expected rental values. This further demonstrates that we are witnessing rental growth in our portfolio across all of the major UK regions.
The acquisition pipeline remains very healthy and we will update shareholders as we continue to invest the proceeds from the earlier in the year equity raise and the recycling of capital from sales.
The diversity of our income continues to grow as we expand our asset base and further enhance the quality and quantity of our income and expand our tenant base."