
REGIONAL REIT Ltd.
(“Regional REIT”, the “Group” or the “Company”)
£1.1m of New Rent Secured for Two Nottingham Offices
Regional REIT Ltd. (LSE: RGL), the regional office specialist, is pleased to announce it has completed two new leases totalling 146,262 sq. ft. of previously vacant office space to a specialist electronics manufacturer at One and Two Newstead Court, Nottingham. The occupier has taken a 20-year lease at a headline rent of £1,075,000 per annum (“pa”) with five- yearly RPI rent reviews, and breaks at 10 and 15 years. The offices have been rented in an unrefurbished condition, with the tenant undertaking substantial improvement works at a cost in the region of £5m. The landlord’s holding/void costs associated with the two properties were approximately £700,000 pa.
One Newstead Court provides 47,120 sq. ft. (EPC B) of workspace and Two Newstead Court comprises 99,142 sq. ft. (EPC B). The offices are adjacent and located on Sherwood Business Park, a 165-acre site accommodating two million sq. ft. of offices, distribution facilities and hotels. The site benefits from excellent transport links and has direct access to Junction 27 of the M1 motorway.
Stephen Inglis, CEO of ESR Europe LSPIM Ltd., Investment Adviser commented:
“This letting is a great example of the demand that exists for office space in the regions where new supply is extremely limited. This is one of a number of approaches we have received from tenants unable to identify suitable ready-to-occupy accommodation and are therefore now seeking space that can be refurbished to suit their occupational requirements. I expect this trend to continue as the supply of ready-to-occupy space continues to contract. Achieving a 20-year term with the tenant undertaking an extensive works programme amounting to c. £5million demonstrates the ability of the asset manager to deliver space on terms that strengthen both the Company’s income stream and the value of the portfolio, whilst reducing the Group’s operational costs.”
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