Regional REIT makes 15 leasing transactions

(Sharecast News) - Regional REIT announced on Thursday that it has secured 15 leasing transactions across its portfolio, comprising seven new lettings and eight lease renewals, delivering a total annual rental income of more than £1.6m. The London-listed firm said the deals represented an average uplift of 6.32% above estimated rental values, which it attributed to its active asset management strategy.

"This letting activity underscores the effectiveness of our capital expenditure strategy, securing rents above ERV," said Stephen Inglis, head of asset manager ESR Europe LSPIM.

"The lease renewals also announced today reflect the quality of our existing properties and strong relationships with our occupiers.

"As demand continues to grow for sustainable, well-located and high-quality regional office space, and given the diminishing supply, Regional REIT is well-positioned to harness this momentum and deliver lasting value for shareholders, including the distribution of our attractive and fully covered dividend."

Notable lettings included a 10-year lease at Trueman House, Capitol Park, generating £237,779 per year, and a major agreement with True Potential in Newcastle, which expanded its occupancy to the adjacent Gateway House on a five-year lease while also extending its lease at Newburn House to 2030.

The tenant would fund a significant refurbishment of Gateway House.

In Leeds, Virtual College signed a 10-year lease for space at the Coach Works, while in Glasgow, Charles Scott & Partners agreed to a 10-year lease at 300 Bath Street.

That added to recent leases at the same building with Securigroup, bringing total rental income from that property to £247,170 per year.

Further renewals included a 10-year lease extension with Horiba at 133 Finnieston Street in Glasgow and a 10-year renewal with Autotech at Linford Wood Business Park.

The company said the activity highlighted robust demand for well-located regional office space, supported by supply constraints and growing tenant focus on quality and sustainability.

At 1318 BST, shares in Regional REIT were up 2.56% at 120.4p.

Reporting by Josh White for Sharecast.com.