Toscafund Asset Management and London & Scottish have launched a UK REIT focused on secondary, regional property.

The Regional REIT company, listed on the London Stock Exchange, will invest in UK real estate outside London.

Kevin McGrath, Regional REIT chairman, said support from shareholders, existing and new, had been “very encouraging”.

“We are delighted a further high-quality list of blue-chip institutional investors has decided to come on board,” he said.

“This underlines our belief in the exciting prospects for regional commercial property in the UK.”

A property portfolio worth £386m (€542m) has been added to the REIT, which has a £274.2m net asset value.

Stephen Inglis, CIO and property director at London & Scottish, which will manage the REIT’s assets, 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 presents us with an opportunity to create sustainable income and strong capital returns for our investors.” 

The REIT’s portfolio has a combined contracted rent roll of £37.2m, with a weighted average unexpired lease term of 5.83 years.

The portfolio is 84% let.

Founded in 2000 by Martin Hughes, Toscafund manages $4bn in global equity financials, commercial property and UK debt. Clients include pension funds, international institutional funds, private family offices and high net worth individuals.