The listed vehicle is a combination of two previously existing private property funds externally managed by London & Scottish Investments (“LSI”) and Toscafund Asset Management (“Toscafund”).
- In late 2012 LSI and Toscafund identified a significant mismatch between the available yields between prime and regional secondary commercial properties. They believed this would offer a significant opportunity as the economy strengthened and business confidence grew, as yields would begin to narrow and secondary property values would begin to rise.
- LSI and Toscafund launched their first property fund in May 2013 with £155m of equity and, once fully invested, Fund II was launched with £106m of equity in August 2014.
- Regional REIT was launched in November 2015 combining the two funds for a differentiated investment approach predicated upon the recovery of the UK regional market and to achieve a more liquid shareholder format. The REIT structure also allows shareholders to retain ownership of the asset beyond the stated life of the partnership funds, thereby offering the prospect of achieving greater total returns.