REGIONAL REIT LIMITED (LON:RGL)

Founded in 2015, Regional REIT Limited is a Guernsey-based closed-ended real estate investment trust that handles a combination of two private property funds which are externally managed by the London & Scottish Investments Ltd. and Toscafund Asset Management. The company is the constituent of the premium segment of the office list of the UK’s Financial Conduct Authority and is also listed on the London Stock Exchange since 2015.

The company aims to invest in the portfolio of office properties or debt portfolios where there are opportunities for attractive capital and retail income growth and it is actively managed and mainly located in the regional centers of the UK outside of the M25 motorway as the company believes to have opportunities for future growth, increase in investment flows. The portfolio is maintained to increase the shareholders value, diversify investment risk by investing across a range of geographies, sector, assets, and tenants and letting properties where possible to lower risk tenants and to enhance the equity return by leveraging gearing, borrowing and other source.

The company’s investment objective is to maintain more than 10% strong income by investing in UK’s commercial properties located outside M25 motorways with a motive to deliver high return to its shareholders and its net borrowing to gross investment properties value is targeted to be 40% with maximum limit of 50% for the long term. No single investment can exceed 10% of the company’s gross investment properties value at the time of investment. Only the company board can increase it to 20%. The company’s minimum value of single property investment should be £5 million, except where an asset is within a portfolio of properties for which there shall be no such minimum, further not more than 20% of the gross investment properties value shall be exposed to any one tenant.

The London & Scottish Investments Limited operates as the asset manager, and Toscafund Asset Management LLP operates as the investment manager of the company. As on 31 March, the company’s portfolio included 153 properties, 874 tenants and the value of its portfolio is about £734.7 million and some of its properties are Tay House, Genesis Business Park, Building 2 & 3 HBOS Campus, Hampshire Corporate Park, 800 Aztec West, Norfolk House, Beeston business park, Road 4 Winsford Industrial Estate, Portland Street, etc.