A real estate investment trust (Reit) with a heavy focus on the Scottish commercial property scene is to make its stock market debut this week.
Regional Reit’s shares are expected to start trading on the London Stock Exchange on Friday and the firm said it aims to deliver an “attractive total return to shareholders” by investing in UK commercial property, mainly in the office and industrial sectors in “major regional centres and urban areas outside London”.
Glasgow-based London & Scottish Investments is the asset manager of the trust, which has a property portfolio valued at £386m, while Toscafund Asset Management will act as the investment manager.
The Reit has 128 properties in its portfolio, of which 51 – valued at some £136.5m – are in Scotland.
Chief investment officer Stephen Inglis, who is property director of London & Scottish Investments, said: “There is a structural lack of supply for quality office and industrial space in the major UK business areas outside of London – the areas showing the strongest signs of growth as the economy continues to improve.
“This, alongside our experience and knowledge of the market, presents us with an opportunity to create sustainable income and strong capital returns for our investors.”
Regional Reit said 80 million existing shares are being placed with institutional and other investors at 100p each, giving it a market capitalisation of about £274.2m at the placing price.
Chairman Kevin McGrath, who also chairs M&M Property Asset Management, said: “The support this new Reit has received from both existing and new shareholders is very encouraging. We are delighted that a further high-quality list of blue-chip institutional investors has decided to come on board.
“This underlines our belief in the exciting prospects for regional commercial property in the UK, and is a reflection of the management team’s experience and expertise in this market.”