Regional REIT announces several successful lettings

Regional real estate investment specialist Regional REIT announced further successful lettings 3.0% ahead of expected rental value on Monday, reporting that in total, the rents amounted to £589,856 per annum.

The London-listed firm said that at Star House at Peregrine Business Park in High Wycombe, London & Scottish Property on behalf of Regional REIT had renewed the lease totalling 9,581 square feet to Star Micronics, for five years at a headline rent of £184,450 per annum, or £19.25 per square foot, in line with the expected rental value and subject to a tenant break option at the third anniversary.

At Juniper Park in Basildon, the company said an asset management initiative undertaken by London & Scottish Property on behalf of Regional REIT had seen Schenker take a lease of the whole ground floor offices totalling 12,851 square feet at Juniper Place, on a five year term at a headline rent of £182,260 per annum, or £14.18 per square foot and 4.9% above expected rental value.

As part of the deal, Schenker would give up the lease of its current second floor office early in the new year, consolidating its occupancy on the ground floor.

At Unit 1 of Genesis Business Park in Woking, Gallagher Benefit Services Management Company took a 10-year lease of suite 1C, totalling 4,594 square feet, subject to a break option after five years at a headline rent of £105,662 per annum, or £23.00 per square feet.

In Manchester, at 9 Portland Street, Imperial Office Furniture had extended its lease on part of the second floor, totalling 2,518 square feet until September 2025.

Under the deal, the rent payable from the lease renewal in September 2020 would increase to £55,000 per annum, or £21.84 per square feet, with a nine-month equivalent rent free period granted.

At Copse Walk, of the Cardiff Gate Business Park in Cardiff, the company said the ground floor of unit B, totalling 2,221 square feet has been let to Harrison Clark Rickerbys at a headline rent of £29,984 per annum, or £13.50 per square feet, on a new five-year lease subject to a tenant break option on the third anniversary.

As a result, Regional REIT said it now had full occupation following the recent acquisition in September at the location.

Finally, at 124-136 High Street in Falkirk, Specsavers had taken a new 10-year lease at a headline rent of £32,500 per annum, or £7.45 per square feet and 22.6% above expected rental value, at the retail unit totalling 4,362 square feet, which would see Regional REIT's four units now fully let at the location.

“Demand continues to be strong and we are very encouraged by the rental rates that we are able to achieve, ahead of expected rental value,” said Stephen Inglis, chief executive officer of Regional REIT’s asset manager London & Scottish Property Investment Manager.

“This further demonstrates that we are witnessing rental growth in our portfolio on a national scale.”

Inglis said the company also had “no shortage of properties” to make further acquisitions and to actively manage, improve and subsequently rent out at higher levels, or seek an attractive disposal rate.

“The diversity of income across the portfolio continues to grow as we expand our asset base and further enhance the quality and quantity of our rental income and expand our tenant base.

“We look forward to updating shareholders further on our progress in due course.”

At 1443 GMT, shares in Regional REIT were down 0.68% at 112.82p.