Regional REIT : Completion of the Acquisition/ Share Issue/ TVR

24 March 2017

Regional REIT Limited

Completion of the Acquisition of c. £129m of Property Assets from The Conygar Investment Company PLC

Issue of New Share Capital and Total Voting Rights of Regional REIT Limited

Regional REIT Limited (LSE: RGL) ('Regional REIT', 'the Group' or 'the Company'), the UK regional office and industrial property focused REIT, is pleased to announce that it has today completed the acquisition of c. £129mUK regional office, industrial and retail & retail distribution investment properties from The Conygar Investment Company PLC ('Conygar') (the 'Acquisition'), originally announced on 23 February 2017. Regional REIT has acquired the properties by way of the purchase of a number of Special Purpose Vehicles ('SPVs') that own the individual assets.

In settlement of the Acquisition, the Company has now issued 26,326,644 new ordinary shares (the 'Consideration Shares') to Conygar. Application has been made to the UK Listing Authority and to the London Stock Exchange for admission of the Consideration Shares (which will rank pari passuwith the existing ordinary shares in the Company) to the Official List of the UK Listing Authority and to trading on the Main Market of the London Stock Exchange ('Admission'). It is expected that Admission will occur on 28 March 2017.

In conformity with FCA Disclosure Guidance and Transparency Rules, the Company notifies that following the issue of the Consideration Shares, the Company's issued share capital now consists of 300,543,908 ordinary shares of no par value each with voting rights. The Company does not hold any shares in treasury. Therefore the total number of voting rights in the Company is 300,543,908.

The above total voting rights figure may be used by shareholders as the denominator for the calculations by which they will determine whether they are required to notify their interest in Regional REIT Limited under the FCA's Disclosure Guidance and Transparency Rules.

Stephen Inglis, Group Property Director and Chief Investment Officer of London & Scottish Investments Limited, commented: 'I am very pleased with the acquisition of this portfolio of high quality properties. The assets provide the benefits of portfolio scale and coverage across the UK's regions and for extensive active asset management opportunities, whilst requiring only limited ongoing investment. The acquisition is consistent with Regional REIT's strategy for the opportunistic purchase of commercial property investment assets, is complementary to the existing asset base of the Group and aligns well with the expertise and experience of the Asset Manager.'

- ENDS -

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

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 2016, was spread across 123 regional properties, 941 units and 717 tenants. As at 31 December 2016, the investment portfolio had a value of £502.4m and a net initial yield of 6.7%. The weighted average unexpired lease term to first break was 3.6 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.