Regional REIT has announced it is considering an equity fundraise “to take advantage of its growing near term pipeline of accretive growth opportunities in the investment market”.
The fundraise, the group said, would “further de-risk the portfolio by sector, region, and tenant type, whilst providing asset management potential”.
Regional REIT’s portfolio has grown over the past few months following the deployment of the £62.5m it raised in June 2019 and it said the robust nature of occupational take-up it has witnessed gives it confidence to continue to grow the portfolio.
As at 31 December 2019, the portfolio was valued at £787.9m, an increase of 9.7% during 2019, reflecting acquisitions made in the period. The like-for-like value of the group’s core office and industrial segment (93.6% by value) also increased in 2019 by 1.4%. The overall portfolio valuation was broadly unchanged on a like for like basis with a 0.1% decrease – due to a valuation drop off in it retail holdings.
The funds from the June 2019 fundraise have been invested in 11 office assets for a total of £63.9m, producing a combined net initial yield of 8.7%.
If Regional REIT goes ahead with the fundraise it will publish a prospectus. It said further announcements would follow in due course.
It is the latest REIT to announce plans to tap the market for money. Earlier this week, Warehouse REIT said it was considering a fundraise having established a £352m pipeline of potential acquisitions.
AEW UK REIT has said it is targeting a £20m fundraise. Meanwhile Urban Logistics REIT raised £130m last week, smashing its target of £100m.
RGL : Regional REIT proposes new fundraise