Panmure Liberum acts as Joint Sponsor, Joint Financial Adviser and Joint Broker on Regional REIT’s £110.5 million equity fundraising

Regional REIT is an established UK real estate investment trust with a portfolio located wholly in the UK and comprises, predominantly, quality offices located in the regional centres of the UK outside of the M25 motorway. The portfolio is highly diversified, with 132 properties, 1,305 individual units and 827 tenants as at the date of this announcement, with a valuation of £647.8 million as at 21 June 2024.

The £110.5 million capital raise was structured by way of a fully underwritten Placing, Overseas Placing and Open Offer of 1,105,149,821 New Ordinary Shares at an issue price of 10 pence per New Ordinary Share.

The capital raise was fully underwritten by Bridgemere Investments Limited, which is part of the Bridgemere group of Companies established by Steve Morgan CBE (founded the housebuilder, Redrow Plc).

72.6% of the Open Offer was taken-up by Qualifying Shareholders, raising gross proceeds of £80.2m and the remaining 27.4% was allocated to Bridgemere, raising gross proceeds of £30.3m. Following Admission, Bridgemere will hold in aggregate 303,070,408 shares representing 18.7 per cent. of the Enlarged Issued Share Capital.

The capital raise will enable the Company's £50 million Retail Bond due in August 2024 to be fully repaid, eliminating this short-term liability and further reducing the constraints caused by the requirement to pay coupon distributions on the Retail Bond. In addition, £26.3 million will be used to reduce bank facilities, which will result in the Company having greater headroom under the covenants in such facilities, and the remaining £28.4 million will provide additional flexibility to fund selective capital expenditure on assets, which will enhance earnings in the near term and value in the mid to long-term, further underpinning quarterly dividends going forward. This will reduce LTV from 56.8% (based on the valuations as at 21 June 2024 as set out in the Valuation Report) to 40.6% upon completion of the Capital Raising.

The Company also announced a 1 for 10 Share Consolidation alongside the capital raise.

Panmure Liberum Team

Investment Banking – David Watkins, Amrit Mahbubani, Ailsa Macmaster, Joseph Tan

Research – Tim Leckie

Sales – Michael Janes, David Hawkins, Joe Yendell

Investor Relations – Sarah Downing

Legal – Nothando Malaba

Senior Adviser – Sapna Shah

Senior Leadership – Richard Morecombe