Regional REIT : signs Bristol’s largest out-of-town office letting in Q4 2018 for second quarter running

14 January 2019

Regional REIT signs Bristol's largest out-of-town office letting in Q4 2018 for second

quarter running

London & Scottish Investments Limited ("LSI"), Asset Manager to Regional REIT Limited ("the Group"), the UK regional office and industrial property focused real estate investment trust, today announces that it secured Bristol's largest letting in the out of town office market for the second quarter running in 2018.

The terms of the lease, agreed in December, see the Ministry of Defence take 32,000 sq. ft. of office space at 800 Aztec West, for a ten-year period. This represented Bristol's largest out-of-town office letting in 2018, and follows the lease agreed with Edvance SAS, which was the largest out-of-town letting in Bristol agreed in Q3 of 2018. These lettings result in 800 Aztec West being 87% let within 5 months of completing an extensive refurbishment. The building was acquired by Regional REIT in January 2016.

Stephen Inglis, Chief Executive Officer of London & Scottish Investments Limited, the

Asset Manager of Regional REIT Limited commented: "This is an important letting for

the Group, as we took the rare decision to speculatively refurbish the property due to the intense demand for quality office space in Bristol from both tenants and investors. The city has emerged as a centre for many key growth sectors on account of the region's great transport links and the formation of Government regional hubs. Having seen strong interest in Aztec West, we're delighted to have secured two high-quality tenants."

Regional REIT has also agreed to purchase a pair of office pavilions, which adjoins its existing ownership, at Clydebank Business Park for £1.8m. The buildings, comprising of 28,000 sq. ft. of office space, are both leased to Clydesdale Bank until February 2024. The assets are expected to provide a net income of approximately £320k per annum, which equates to a net initial yield of 16.7%. This completes Regional REIT's ownership of all of Mariner Court.

- ENDS -

Enquiries:

Regional REIT Limited

Press enquiries through Headland

Toscafund Asset Management

Tel: [phone]

Investment Manager to the Group

Adam Dickinson, Investor Relations, Regional REIT Limited

London & Scottish Investments

Tel: [phone]

Asset Manager to the Group

Stephen Inglis

Headland PR Consultancy LLP

Tel: [phone]

Financial PR

Francesca Tuckett / Jack Gault

About Regional REIT

Regional REIT Limited (LSE: RGL) is a London Stock Exchange Main Market traded specialist real estate investment trust focused on office and industrial property interests in the principal regional locations of the United Kingdom outside of the M25 motorway.

Regional REIT is managed by London & Scottish Investments, the Asset Manager, and Toscafund Asset Management, the Investment Manager, and was formed by the combination of two existing funds previously created by the Managers as a differentiated play on the expected recovery in UK regional property, to deliver an attractive total return to Shareholders and with a strong focus on income.

The Group's investment portfolio, as at 30 June 2018, was spread across 151 regional properties, 1,294 units and 950 tenants. As at 30 June 2018, the investment portfolio had a value of £758.7m and a net initial yield of 6.4%. The weighted average unexpired lease term to first break was 3.5 years.

The Company's shares were admitted to the Official List of the UK's Financial Conduct Authority and to trading on the London Stock Exchange on 6 November 2015. For more information, please visit the Group's website atwww.regionalreit.com.

Cautionary Statement

This document has been prepared solely to provide additional information to Shareholders to assess the Group's performance in relation to its operations and growth potential. The document should not be relied upon by any other party or for any other reason. Any forward looking statements made in this document are done so by the Directors in good faith based on the information available to them up to the time of their approval of this document. However, such statements should be treated with caution due to the inherent uncertainties, including both economic and business risk factors, underlying any such forward- looking information.

ESMA Legal Entity Identifier ("LEI"): (549300D8G4NKLRIKBX73)