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Regional REIT Boosts Rental Income With Range Of New Lettings

9th Oct 2019 10:40

(Alliance News) - Regional REIT Ltd on Wednesday said it has completed several lettings which in total were 11% ahead of expected rental value.

In Juniper Park, Basildon, a property in the 16-unit site was renewed for five years with current tenants Vanguard Logistics Services Ltd. Annual headline rent at the unit in Essex was increased by 15% to GBP370,000 from GBP320,665 and is 5.4% ahead of estimated rental value.

Three leases in Charles House, Northampton, with Reed Specialist Recruitment, were renewed for a further two years to September 2021. The real estate investment trust said the combined annual rent at the leases totals GBP112,700, 2.7% ahead of ERV, and the agreement has a break option after the first year.

In Altrincham, Greater Manchester, a lease with transport management software firm Enterprise Software Systems Ltd was renewed for a further 10 years until September 2029 with a yearly headline rent of GBP89,400, which Regional REIT said is 15% ahead of ERV.

A lease on a petrol filling and retail site in Leicester was renewed for 20 years, the company said. Rontec Service Station 1A Ltd will pay an annual rent of GBP147,025, which is 40% ahead of ERV.

Two vacant units, one in Bellshill, Scotland and one in Welwyn Garden City, Hertfordshire have been leased at 4.1% and 9.3% ahead of ERV, respectively.

Wireless Infrastructure Ltd will pay GBP58,713 per year for the first floor space in Bellshill as part of a 10-year agreement with a break option after five. Network services provider Coreix Ltd will occupy the Hertfordshire space for five years, paying an annual rent of GBP70,840.

The chief executive of London & Scottish Property Investment Management, Regional REIT's asset manager, Stephen Inglis hailed the new lettings as "significant".

He added: "The quality and diversity of our customer base continues to grow across the regions, which coupled with our strong asset management platform, remains a key differentiator for our investment case and we are delighted to see it continue to grow. In aggregate, at £848,678 in revenue, the lettings announced today represent a 10.9% uplift from their current ERV, demonstrating the on-going success of the asset manager's activities across our national portfolio."

Shares in Regional REIT were 0.6% higher at 102.80 pence each in London on Wednesday afternoon.

By Eric Cunha; [email protected]

Copyright 2019 Alliance News Limited. All Rights Reserved.


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