Regional REIT : Acquisition of ?35.2 million regional portfolio

2 May 2018

Regional REIT Limited

Acquisition of £35.2 million regional portfolio

Regional REIT Limited (LSE: RGL) ('Regional REIT', 'the Group' or 'the Company'), the UK regional office and industrial property focused REIT, today announces it has exchanged contracts to purchase six regional assets from Kildare Partners for £35.2 million in an off market transaction. This is expected to provide a net income of c. £3.1 million per annum which equates to a net initial yield of 8.4% and further utilises the proceeds of the fundraise in December 2017.

The portfolio consists of five regional offices and one office/distribution property located in Telford, Rotherham, Macclesfield, Dundee, Chelmsford and Bedford. The assets total circa 320,000 sq. ft. let to 12 tenants including NHS Property Services Ltd., Swiss Precision Diagnostics, Capgemini, Elior UK Services Ltd., Royal Bank of Scotland plc. and The Scottish Ministers.

Completion will take place towards the end of June 2018.

Stephen Inglis, Chief Executive Officer of London & Scottish Investments Limited, the Asset Manager commented: 'The acquisition of this portfolio provides us with another set of complimentary income streams and further diversifies our tenant base. This off market acquisition complements our existing portfolio and strengthens our offer in several regional markets where we see good occupational demand.'

This announcement contains inside information which is disclosed in accordance with the Market Abuse Regulation that came into effect on 3 July 2016.

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About Regional REIT

About Regional REIT Regional REIT Limited (LSE: RGL) is a London Stock Exchange Main Market traded specialist real estate investment trust focused on office and industrial property interests in the principal regional locations of the United Kingdom outside of the M25 motorway.

Regional REIT is managed by London & Scottish Investments, the Asset Manager, and Toscafund Asset Management, the Investment Manager, and was formed by the combination of two existing funds previously created by the Managers as a differentiated play on the expected recovery in UK regional property, to deliver an attractive total return to Shareholders and with a strong focus on income.

The Group's investment portfolio, as at 31 December 2017, was spread across 164 regional properties, 1,368 units and 1,026 tenants. As at 31 December 2017, the investment portfolio had a value of £737.3m and a net initial yield of 6.5%. The weighted average unexpired lease term to first break was 3.5 years.

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.

www.regionalreit.com