Regional REIT on ‘stronger footing’ as refurbs get under way

The team at Regional REIT has said the firm is on a “much stronger financial footing” after a £110.5m equity raise, with £15m of new projects being lined up. In a trading update for the three months to 30 September, the REIT said some £28.4m of the proceeds would be used to reposition the portfolio. A refurbishment of Ashby Park in Ashby De La Zouch, Leicestershire, recently completed at a cost of £2.7m. The team said work hade already led to a new 10-year lease with Ashfield Healthcare and Q Collection, generating an aggregate £500,000 of annual rental income. “The challenging economic backdrop remained evident with a subdued investment market; and although positive leasing momentum continued across the portfolio, the time to completion continues to remain untypically long,” the REIT said. “In the near term, the board remains focused on a controlled disposal programme and repositioning the portfolio to capture the accretive opportunities from increasingly undertaking the planning consent activities, whilst maintaining dividend distributions.”