Redefine International PLC £26m Sale of BMW Showroom (3408P)
31 August 2017 - 4:00PM
UK Regulatory
TIDMRDI
RNS Number : 3408P
Redefine International PLC
31 August 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 MAKES FURTHER PROGRESS ON DISPOSALS
WITH GBP26M SALE OF BMW SHOWROOM
Redefine International, the FTSE 250 income-focused UK REIT,
announces that it has completed on the sale of the Sytner BMW
showroom in High Wycombe for GBP26.1 million to a UK pension fund.
The sale price reflects a net initial yield of 5.0% and a premium
of 5.8% to the 28 February 2017 book value. The property was
acquired in March 2016 as part of the AUK transaction. The disposal
provides an opportunity to recycle capital out of an asset with
limited near-term rental growth prospects at a low initial
yield.
In the first half of the financial year the Company disposed of
GBP95.0 million of assets at an average premium of 12.4% to the 31
August 2016 book value. It has since exchanged or completed on a
further GBP46.6 million of assets which includes the sale of High
Wycombe, at an average net initial yield of 5.8% and a premium of
10.7% to the 28 February 2017 book value. The other disposals
include two secondary office assets in Bedford and Chatham and a
standalone Carphone Warehouse unit at Merton Priory Retail
Park.
The disposals are in line with the Company's strategy of
enhancing the income characteristics of its portfolio by allocating
capital to assets and locations that can deliver long term
sustainable income returns.
Mike Watters, CEO of Redefine International, commented:
"This disposal is a further example of the quality of the assets
in the AUK transaction, which has provided a number of
opportunities to extract value over the last 18 months in line with
our strategy. Together with the other recent sales, the transaction
provides the opportunity to recycle capital into new investments,
where we can use our asset management skills to deliver stronger
income returns over the long term."
For further information:
Redefine International P.L.C.
Mike Watters, Stephen Oakenfull Tel: +44 (0) 20
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. At 28 February 2017, the diversified portfolio,
independently valued at GBP1.5 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.
The secure income stream is supported by a diversified portfolio
and tenant base, with a WAULT of 7.5 years complemented by an
average debt maturity of 6.8 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
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.
For more information on Redefine International, please refer to
the Company's website www.redefineinternational.com.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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