Regional REIT : Significant New Letting – Increases Occupancy of Recently Acquired Portfolio to c. 89%

Regional REIT Limited

Located at Park West One, Farnborough Business Park, Brennan House is a self-contained Grade A, three storey, air-conditioned office building extending to 30,879 sq. ft. over three floors and with its own car parking facilities. Brennan House has been subject to a very extensive and recently completed refurbishment and is positioned within an attractive landscaped setting.

The building was only recently acquired by Regional REIT, on 24 March 2017, as part of the purchase from The Conygar Investment Company PLC ("Conygar") of a portfolio of UK regional office, industrial and retail & retail distribution investment properties valued at c.

£129m. Brennan House represents c. 6 percentage points of the vacant space (by value) of the portfolio of property assets and this letting will increase the occupancy on the acquired portfolio to an average of c. 89% currently.

The deal will see Fluor taking a lease of the entire building on a 7-year lease, subject to break options, at a headline rent of £756,536 pa (£24.50 psf).

Fluor is the UK-based subsidiary of Fluor Corporation, a US Fortune 500 company, one of the world's leading listed multinational engineering, procurement, construction, maintenance and project management companies.

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.