Regional REIT : Lettings and Regears Update

Regional REIT Limited

• Lettings to Daisy and Utilita at Hampshire House, Hampshire Corporate Park, Chandlers Ford, Eastleigh

  Completed the lettings of the first-floor to Daisy Wholesale Limited, a telecoms provider, and Utilita Energy, each of whom will occupy 10,000 sq. ft. on new 10-year leases, at a rent of

  £19.75 per sq. ft..

• Renewal of lease with Scottish Ministers at Calton House, South Gyle, Edinburgh Completed a 5-year extension to the lease of the Scottish Prison Service's 51,914 sq. ft. administrative HQ from October 2017.
• Increased occupancy at Gyleview House, South Gyle, Edinburgh

  In partnership with serviced office operator Citibase, Regional REIT completed a number of new lettings in April and May. These lettings will generate additional headline gross revenue of £21,950 per month.

• Renewal of lease with Dunelm (Soft Furnishings) Limited at Skippingdale Industrial Park, Scunthorpe

Completed a 5-year lease renewal on 30,495 sq. ft. retail warehouse unit.

London & Scottish Property, property and asset manager to Regional REIT Limited, has completed lettings of the newly refurbished first floor of Hampshire House to internet and telecoms provider, Daisy Wholesale Limited ("Daisy"), and to the leading supplier of 'pay as you go' energy in the UK, Utilita Energy Limited. Each will occupy 10,000 sq. ft. of newly refurbished space, on 10-year leases, at a rent of £19.75 psf, with options to break at the fifth anniversary.

Formerly known as NatWest House, the building was rebranded as part of refurbishment works which have already seen the creation of a new entrance and approach and the provision of new shower facilities and refurbishment of the common areas. This final phase of the refurbishment of the office space follows the expiry of the lease to Aviva in December 2016, completing a £1.5m investment in the building by Regional REIT.

By advance programming and marketing of the space London & Scottish have been able to minimise the void period for the building to 5 months whilst the works were ongoing.

London & Scottish Property, property and asset manager to Regional REIT Limited, has completed the renewal of the lease with The Scottish Ministers of the 51,914 sq. ft. Calton House at South Gyle, Edinburgh. The building is home to the Scottish Prison Service, being its administrative HQ.

The current lease was due to expire in October of this year, however, agreement has been reached to extend this for a further 5-years at the passing rent of £612,108 (£11.79 psf), subject to a rolling break option in favour of the tenant from 30 April 2020.

London & Scottish Property, property and asset manager to Regional REIT Limited, has completed further new lettings in April and May at the 24,503 sq. ft. Gyleview House, South Gyle, Edinburgh.

Working with serviced office centre operator, Citibase, these lettings will generate additional headline revenue of £21,950 per month before costs.

Citibase are now forecasting the centre to generate net profit revenue after operator costs for the forthcoming 12 months of £289,559 (£11.81 psf). The building is heading towards full occupancy with three further strong letting prospects currently being advanced.

London & Scottish Property, property and asset manager to Regional REIT Limited, has completed the renewal of the lease of the 30,495 sq. ft. retail warehouse unit at Plot 15, Holyrood Drive, Skippingdale Industrial Park, Scunthorpe. The lease renewal is with Dunelm (Soft Furnishings) Limited for a further 5-years from April 2017, at a rent of £182,286 per annum.

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. On 24 March 2017, the Group announced the completion of the acquisition of c. £129m of UK regional office, industrial and retail & retail distribution investment properties.

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.

London & Scottish Property is a wholly-owned subsidiary of London & Scottish Investments Limited, the Asset Manager to Regional REIT Limited, providing property and asset management services.