RGL Regional Reit Limited

1 May 2024

REGIONAL REIT Limited

("Regional REIT" the "Group" or the "Company")

Positive Letting Update

Delta 1200, Swindon and Bennett House, Stoke-on-Trent

Fully Occupied, both Ahead of Estimated Rental Value

Regional REIT Limited (LSE: RGL), the regional workspace specialist, is pleased to announce two new lettings at Bennett House, Stoke-on-Trent and Delta 1200, Delta Business Park, Swindon. The buildings are both modern and sought after office properties and are now 100% occupied, providing an aggregate rental income of £0.8 million per annum.

This follows the successful letting of previously vacant units: Bennett House (46,183 sq. ft.) of 7,511 sq. ft to NHS Property Services Ltd. for 5 years with a break option in March 2027, at a rent of £95,000 (£12.65/ sq. ft.), 9.8% ahead of ERV; and at Delta 1200 (20,178 sq. ft.) a letting of 9,776 sq. ft. has been leased to the life sciences sector for 10 years with the option to break in February 2029, at a rent of £185,744 (£19.15/ sq. ft.), 8.6% ahead of ERV.

Bennett House occupies a prominent main roadside location with excellent access to the town centre and surrounding amenities and is arranged over ground floor and two upper floors, with 161 car park spaces providing an excellent town centre parking ratio of 1:290 sq ft.. The property was subject to a comprehensive refurbishment completed in 2019 resulting in the letting 32,514 sq. ft. to The Secretary of State for Housing, Communities and Local Government and 6,620 sq. ft. to the Valuation Office. This latest letting sees the property fully occupied. The property has an EPC B rating.

Delta 1200 comprises a detached office building arranged over two floors extending to 20,178 sq. ft.. The property benefits from 85 car parking spaces, providing a parking ratio of 1:244 sq. ft.. The fully let status of the building follows a refurbishment of the ground floor and installation of a new VRF system that saw existing tenant TM Group (UK) Ltd. re-gear their lease for a further 10 years with a break at year five, at a rental income of £187,236 (£18.00/ sq. ft.). Following completion of refurbishment works, the EPC for the property also improved from B to A.

Stephen Inglis, CEO of London & Scottish Property Investment Management, Asset Manager commented:

"We are pleased to see further letting progress with this announcement of both Bennett House and Delta 1200 achieving fully let status at rentals well ahead of ERV. Our ongoing active programme of improving our assets has helped us secure new high-quality tenants and in turn bolstered the overall properties occupancy and rental income. These lettings are testament to an improving regional office market and demonstrates demand for our high quality assets."

Forthcoming Events

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About Regional REIT

Regional REIT Limited ("Regional REIT" or the "Company") and its subsidiaries (the "Group") is a United Kingdom ("UK") based real estate investment trust that launched in November 2015. It is managed by London & Scottish Property Investment Management Limited, the Asset Manager, and ARA Europe Private Markets, the Investment Adviser.

Regional REIT's commercial property portfolio is comprised wholly of income producing UK assets and comprises, predominantly of offices located in the regional centres outside of the M25 motorway. The portfolio is geographically diversified, with 144 properties, 978 occupiers as at 31 December 2023, with a valuation of c.£700.7m.

Regional REIT pursues its investment objective by investing in, actively managing and disposing of regional core and core plus property assets. It aims to deliver an attractive total return to its Shareholders, targeting greater than 10% per annum, with a strong focus on income supported by additional capital growth prospects.

The Company's shares were admitted to the Official List of the UK's Financial Conduct Authority and to trading on the London Stock Exchange on 6 November 2015. For more information, please visit the Group's website at www.regionalreit.com .

Cautionary Statement

This document has been prepared solely to provide additional information to Shareholders to assess the Group's performance in relation to its operations and growth potential. The document should not be relied upon by any other party or for any other reason. Any forward looking statements made in this document are done so by the Directors in good faith based on the information available to them up to the time of their approval of this document. However, such statements should be treated with caution due to the inherent uncertainties, including both economic and business risk factors, underlying any such forward-looking information.

ESMA Legal Entity Identifier ("LEI"): 549300D8G4NKLRIKBX73