TIDMRDI
RNS Number : 3876U
Redefine International PLC
18 January 2017
REDEFINE INTERNATIONAL P.L.C.
("Redefine International" or the "Company")
(Registered number 010534V)
LSE share code: RDI
JSE share code: RPL
ISIN: IM00B8BV8G91
REDEFINE INTERNATIONAL COMPLETES EUR106 MILLION GERMAN OFFICE
PORTFOLIO DISPOSAL
Redefine International, the FTSE 250 income-focused UK-REIT,
announces that it has completed the sale of four German office
assets for a gross consideration of EUR106 million. The assets,
which were disposed of via a share sale, were held in a joint
venture with the Menora Mivtachim Group ("Menora"). The Company's
49% proportionate share reflects an 8.6% premium to the book value.
It is intended that Redefine International's net proceeds of
EUR24.9 million, which includes a performance fee of EUR2.4
million, will be reinvested into value accretive opportunities and
used to reduce debt.
The properties, situated in Berlin, Dresden, Cologne and
Stuttgart, total 45,145 sqm (485,937 sqft), and are let to a German
government-backed social insurance body, VBG, on a combined WAULT
of just under seven years. The portfolio generated a total annual
gross rental income of EUR8.1 million of which EUR4.0 million was
attributable to Redefine International.
In 2012, the Company entered into a joint venture agreement with
Menora, one of Israel's largest insurance and pension funds, in
order to undertake certain co-investments in properties located in
Germany. The agreement reflected a common investment strategy of
acquiring high quality real estate, leased to strong covenants on
long-term leases. At the time, Menora identified Redefine
International as having the necessary deep-seated experience and
market understanding to source suitable investments, manage the
acquisition process and provide the subsequent asset management
services.
Mike Watters, CEO of Redefine International commented:
"In line with our strategy to continuously improve the quality
of our portfolio, these four offices were identified for sale. We
are very pleased with the transaction having achieved an impressive
27% IRR over the investment period. The proceeds from this
successful and timely sale, which were enhanced by the current
strength of the Euro, will be reinvested into value accretive
assets and used to effectively reduce debt. This is in line with
our stated aim and commitment to focus on delivering superior
income-led total returns."
For further information:
Redefine International P.L.C.
Mike Watters, Stephen Oakenfull, Tel: +44 (0) 20
Janine Ackermann 7811 0100
FTI Consulting
UK Public Relations Adviser
Dido Laurimore, Claire Turvey, Tel: +44 (0) 20
Ellie Sweeney 3727 1000
Instinctif Partners
SA Public Relations Adviser
Frederic Cornet, Lizelle du Tel: +27 (0) 11
Toit 447 3030
Java Capital
JSE Sponsor Tel: +27 (0) 11
722 3050
Note to editors:
About Redefine International
Redefine International is an income focused FTSE 250 UK Real
Estate Investment Trust (UK-REIT) committed to delivering superior
distributions to its shareholders throughout the property
cycle.
The Company's income driven total returns are underpinned by a
diversified portfolio, together with an efficient capital
structure. The continued transformation of both the corporate
structure and asset base offer a solid foundation to drive further
value. The diversified portfolio, independently valued at GBP1.53
billion, is focused in Europe's two strongest economies, being the
United Kingdom and Germany. The portfolio is weighted towards well
located properties across a range of sectors, including retail,
offices, distribution and hotels, which benefit from strong demand
and from which they can capture income and value growth by
attracting high calibre occupiers on long leases. The Company's
investment philosophy is to effectively allocate recycled capital
from mature assets into sectors and locations with strong occupier
fundamentals and individual assets with realisable upside.
Currently the secure income stream is supported by a diversified
portfolio and tenant base, with a WAULT of 7.8 years complemented
by an average debt maturity of 6.9 years of which over 95% of
interest costs are either fixed or capped. The Company is focused
on all aspects impacting shareholder distributions and boasts one
of the lowest cost ratios in the industry whilst continuously
driving a lower cost of debt.
Redefine International holds a primary listing on the London
Stock Exchange and a secondary listing on the Johannesburg Stock
Exchange and is included within the FTSE 250, EPRA and GPR
indices.
The Company will be hosting a Capital Markets Day on Monday, 6
February 2017. The presentation and a live webcast will be
available on the Company's website at 10:30am (UK time), 12:30pm
(SA time) on Monday, 6 February 2017:
www.redefineinternational.com.
For more information on Redefine International, please refer to
the Company's website www.redefineinternational.com.
About Menora Mivtachim
Menora Mivtachim Group specializes in insurance business,
pension and finance. The group manages assets totaling
approximately153 billion Israeli shekels. The group offers a
variety of solutions in all sectors of life insurance, health
insurance, property and casualty insurance, pension funds, new
pension funds, provident funds, investment portfolios, mutual funds
and advanced financial products. Menora Mivtachim fully owns the
largest pension fund in Israel -- "New Mivtachim," with 81 billion
Israeli shekels worth of assets under management. Operating since
1935, Menora has distinguished itself as a reliable, innovative and
stable company, providing its customers with professional and
efficient service.
For more information:
www.menoramivt.co.il/wps/portal/ir/home
This information is provided by RNS
The company news service from the London Stock Exchange
END
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