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 3.0% ahead of expected rental value ("ERV"). In total the rents amount to £589,856 per annum:
Star House, Peregrine Business Park, High Wycombe: Following the recent acquisition of this six building business park extending to 46,374 sq. ft., London & Scottish Property on behalf of Regional REIT Limited has renewed the lease of Star House (9,581 sq. ft.) to Star Micronics Limited for 5 years at a headline rent of £184,450 per annum (£19.25/sq. ft.) in line with ERV subject to a tenant break option at the third anniversary.
Juniper Park, Basildon: An asset management initiative undertaken by London & Scottish Property on behalf of Regional REIT has seen Schenker Limited take a lease of the whole ground floor offices (12,851 sq. ft.) at Juniper Place on a five year term at a headline rent of £182,260 per annum (£14.18/sq. ft. and 4.9% above ERV). As part of the deal, Schenker will give up their lease of their current second floor office early in the New Year consolidating their occupancy on the ground floor.
Unit 1, Genesis Business Park, Woking: Gallagher Benefit Services Management Company Limited has taken a 10 year lease of Suite 1C (4,594 sq. ft.) subject to a break option after five years at a headline rent of £105,662 per annum (£23.00/sq. ft.).
9 Portland Street, Manchester: Imperial Office Furniture Limited has extended its lease on part of the second floor (2,518 sq. ft.) until September 2025. Under the deal the rent payable from the lease renewal in September 2020 will increase to £55,000 per annum (£21.84/sq. ft.) with a 9 month equivalent rent free period granted.
Copse Walk, Cardiff Gate Business Park, Cardiff: Unit B, Ground Floor (2,221 sq. ft.) has been let to Harrison Clark Rickerbys at a headline rent of £29,984 per annum (£13.50/sq. ft.) on a new five year lease subject to a tenant break option on the third anniversary. As a result, Regional REIT now has full occupation following the recent acquisition in September at this location.
124-136 High Street, Falkirk: Specsavers has taken a new 10 year lease at a headline rent of £32,500 per annum (£7.45/sq. ft. and 22.6% above ERV) at this retail unit (4,362 sq. ft.) which sees Regional REIT's four units now fully let at this location.
Stephen Inglis, CEO of London & Scottish Property Investment Management, the Asset Manager, commented:
"Demand continues to be strong and we are very encouraged by the rental rates that we are able to achieve, ahead of ERV. This further demonstrates that we are witnessing rental growth in our portfolio on a national scale. We also have no shortage of properties to make further acquisitions and to actively manage, improve and subsequently rent out at higher levels or seek an attractive disposal rate.
The diversity of income across the portfolio continues to grow as we expand our asset base and further enhance the quality and quantity of our rental income and expand our tenant base. We look forward to updating shareholders further on our progress in due course."