Regional REIT secures two new lettings

1st May 2024 08:46

(Sharecast News) - Regional REIT announced two new lettings at Bennett House in Stoke-on-Trent and Delta 1200 at Delta Business Park in Swindon on Wednesday.

The London-listed real estate investment trust said both buildings were now fully occupied, generating an aggregate rental income of £0.8m per annum.

At Bennett House, a letting of 7,511 square feet to NHS Property Services for five years, with a break option in March 2027, was secured at a rent of £95,000, or £12.65 per square foot, surpassing the estimated rental value (ERV) by 9.8%.

Similarly, at Delta 1200, a letting of 9,776 square feet to the life sciences sector for 10 years, with the option to break in February 2029, was agreed at a rent of £185,744, or £19.15 per square foot, exceeding the ERV by 8.6%.

"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," said Stephen Inglis, chief executive officer of Regional REIT's asset manager, London & Scottish Property Investment Management.

"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."

At 1059 BST, shares in Regional REIT were up 0.67% at 22.55p.

Reporting by Josh White for Sharecast.com.