Rents up 11% against ERV at Regional REIT

Rental growth is keeping Regional REIT positive in the three months ended 30 June. The group said since 1 April it had agreed some 69,067 sq ft of lettings, providing £700,000 of fresh rental income. The deals have been agreed at an average of 11% ahead of ERVs. A further seven leases on 47,000 sq ft of space have been renewed, delivering £600,000 of rental income. Stephen Inglis, chief executive at Regional REIT’s asset manager London & Scottish Property Investment Management, said: “During the quarter we were pleased to achieve further progress in the group’s letting activity and disposal programme, with £0.7m of additional notable rental income from new leases and £6.9m generated from recent disposals.” He added: “As announced, the successful capital raise of £110.5m ensures the repayment of the retail bond, facilitates the further reduction of the LTV to 40.6%, and will provide for accretive capital expenditure on assets for the long term.” Deals secured during the period, include: Ashby Park, Ashby De La Zouch – Ashfield Healthcare has let 18,942 sq ft of office space to July 2034, with an option to break in 2029, at a rental income of £350,427 pa (£18.50 per sq ft). Central Park, New Lane, Leeds – QBE Management Services has renewed its existing leases to June 2025, at a combined rental income of £297,390 pa (£13.79 per sq ft) on 21,570 sq ft, and also renewed its car parking lease for an additional £10,000 pa. 1175 Century Way, Thorpe Park, Leeds – Fonemedia has let 3,524 sq ft of office space to May 2029, with an option to break in 2027, at a rental income of £84,576 pa (£24 per sq ft). 1-6 Silver Court, Welwyn Garden City – Telespazio UK has let 3,873 sq ft of office space to April 2027, with an option to break in 2025, at a rental income of £67,800 pa (£17.51 per sq ft). 84 Albion Street, Leeds – Jugo Digital has let 1,304 sq ft of office space to April 2027, with an option to break in 2025, at a rental income of £66,000 pa (£50.61 per sq ft). Cardiff Gate Business Park, Cardiff – SMS Energy Services has renewed its lease to February 2025, at a rental income of £61,908 pa (£14 per sq ft) on 4,422 sq ft. York House, Felixstowe – Poundland has renewed an existing lease of 7,593 sq ft at a rental income of £60,000 (£7.90 per sq ft). The lease is to April 2027. Templeton On The Green, Glasgow – National Society For The Prevention Of Cruelty To Children has renewed its lease to March 2025, at a rental income of £59,820 pa (£12 per sq ft) on 4,985 sq ft. Oakland House, Manchester – the Department for Levelling Up, Housing & Communities renewed its lease to June 2029, with the option to break in 2027, at a rental income of £59,500 pa (£10.92 per sq ft) on 5,450 sq ft. Eagle Court, Coventry Road, Birmingham – Goldbeck Construction has let 2,863 sq ft of office space to May 2025, with an option to break in 2024, at a rental income of £51,534 pa (£18 per sq ft). Murdostoun House, Strathclyde Business Park, Bellshill – ATPAC has let 3,229 sq ft of office space to June 2029, with an option to break in 2027, at a rental income of £41,982 pa (£13 per sq ft); and Beaufort Office Park, Bristol – St John Ambulance has renewed its lease to May 2028, with the option to break in 2026, at a rental income of £49,170 pa (£16.50 per sq ft) on 2,980 sq ft.