Regional REIT extends €85m debt facility

Regional commercial property specialist Regional REIT has refinanced its existing debt facility, extending the maturity date from August 2026 to December 2028.

Sustainable offices - Regional REIT

Through a focused programme of property disposals, the company has reduced the outstanding balance of this facility from its original £128.0 mln (€149.6 mln) to the current £72.4 mln (€84.6 mln). The lending syndicate remains a group of high-street banks: The Royal Bank of Scotland, Bank of Scotland, and Santander UK.
The interest margin on the facility remains unchanged. In accordance with Group policy, the debt will be fully hedged until its new expiry. The current hedge will stay in place until August 2026, with a new hedging arrangement taking over immediately thereafter. The agreement also includes an option for the Regional REIT to request two additional one-year extensions, subject to lender approval.
This refinancing move extends the Group’s weighted average unexpired debt term to 2.6 years. While the cost of borrowing will remain stable in the short term, the company anticipates that the weighted average cost of debt will rise from 3.4% to approximately 4.1% once the existing hedge expires in 2026.
Stephen Inglis, head of ESR Europe LSPIM (Investment Adviser), commented: "Securing this facility extension on competitive terms underlines the strength of our banking relationships and the attractiveness of our portfolio. The three-year extension of the £72.4 mln facility provides stability as we continue to execute our strategy, focusing on further debt reduction, improving income, and adding value via our capex programme."
Regional REIT’s portfolio consists primarily of offices situated in regional hubs outside the M25. As of 30 September 2025, the portfolio was valued at approximately £595.9 mln (€696.8 mln), comprising 118 properties, 1,242 individual units, and a base of 690 tenants.