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 that it is considering an equity fundraise. The proceeds will be used to take advantage of its growing near term pipeline of accretive growth opportunities in the investment market.
Occupational take-up in the Group's properties remains robust, which coupled with an experienced hands-on asset manager delivering successful asset management initiatives, has resulted in the diversified income portfolio continuing to expand. As announced on 29 January 2020, the portfolio was valued at £787.9m as at 31 December 2019, an increase of 9.7% during 2019, reflecting acquisitions made in the period. The like-for-like value of the Group's core office and industrial segment (93.6% by value) also increased in 2019 by 1.4%. Portfolio valuation was broadly unchanged on a like for like basis with a 0.1% decrease.
The successful June 2019 equity capital raise targeted £50.0m and was substantially oversubscribed at £62.5m. The funds have all been invested ahead of schedule in 11 high quality office assets for a total of £63.9 million producing a combined net initial yield of 8.7%, further diversifying the portfolio:
The asset manager continues to see a growing near term pipeline of accretive growth investment opportunities which would further de-risk the portfolio by sector, region, and tenant type, whilst providing asset management potential.
The funds would be deployed in line with the Group's investment policy with a view to delivering further value to shareholders.
Any such equity fundraise is expected to follow the publication of a prospectus, with further announcements to follow in due course.
As previously announced, forthcoming events:
There will be a briefing for analysts at 9:30am on 26 March 2020 at the Buchanan offices, 107 Cheapside, EC2V 6DN. To request attendance please contact firstname.lastname@example.org