Regional REIT has appointed ARA Europe Private Markets Limited as its investment adviser, taking over from Toscafund Asset Management.
The appointment follows the announcement in April that ARA Europe REIT Manager had acquired a majority shareholding in London & Scottish Property Investment Management, the asset manager of Regional REIT.
The board said that it believes the appointment of ARA Europe will enhance the overall strength and capabilities of both the investment and asset manager. It comes at a time when Regional REIT is trading on a 64% discount to NAV as investor sentiment towards the office sector dwindles.
Both the investment and asset management agreements are to continue on the existing terms to November 2026.
ARA Europe is part of the ESR Group, Asia-Pacific’s largest real asset manager with $150bn AUM, and the largest sponsor and manager of REITs in the region with a total AUM of $45bn.
The development and investment management platform has more than 2,000 people, extending across 28 countries; and thereof, ARA Europe manages over one million sqm of predominately office and logistics assets across the UK, Germany, France, Spain and Ireland with a team of over 140 people providing in house acquisition, development, finance and asset management functions.
Kevin McGrath, chairman of Regional REIT commented: “The board welcomes the appointment of ARA Europe and looks forward to working closely with an experienced and well-resourced team, whilst ensuring the services and operational performance received to date are maintained.”
Stephen Inglis, Non-Executive Director of Regional REIT and CEO of London & Scottish Property Investment Management, the asset manager, commented: “We are delighted to confirm ARA Europe’s appointment today and believe the Company will benefit from such an experienced and well-resourced manager. Whilst the investment management responsibilities are moving to ARA Europe, the day-to-day management of the Company will remain unchanged and there will be no disruption to the running of Regional REIT during the transition.”
Toscafund Asset Management will continue to act as the alternative investment fund manager (AIFM) and provide the relevant regulatory services to the company until an affiliate of ARA Europe has acquired its own regulatory permissions, which is expected to be in early 2024, when the new affiliate will become the AIFM and provide the relevant regulatory services to the company in place of Toscafund.
RGL : Regional REIT appoints new investment adviser
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