RDI REIT PLC RDI Disposes of Leeds Office for £26.1 Million (3337K)
10 April 2018 - 4:00PM
UK Regulatory
TIDMRDI
RNS Number : 3337K
RDI REIT PLC
10 April 2018
RDI REIT P.L.C.
("RDI" or the "Company" or the "Group")
(Registration number 010534V)
LSE share code: RDI
JSE share code: RPL
ISIN: IM00B8BV8G91
LEI: 2138006NHZUMMRYQ1745
RDI DISPOSES OF LEEDS OFFICE FOR GBP26.1 MILLION
RDI, the FTSE 250 income focused UK-REIT, which has a primary
listing on the London Stock Exchange and a secondary listing on the
Johannesburg Stock Exchange, today announces that it has exchanged
contracts for the disposal of City Point in Leeds for GBP26.05
million.
The 5,699 sqm (61,379 sqft) office was originally acquired as
part of the Company's AUK Portfolio acquisition in March 2016 for
an acquisition price of GBP21.6 million with over 17% vacancy. In
January 2017, RDI let 1,022 sqm (11,000 sqft) to Blacks Solicitors
LLP, bringing the asset to full occupancy. The sale price
represents a net initial yield of 5.8% and a 15.3% premium to the
last reported market value. The geared internal rate of return
('IRR') over the investment period was over 20%.
The property, which has been acquired by West Midlands Pension
Fund, delivers total gross annualised rental income of GBP1.6
million with a WAULT of 3.7 years.
The disposal is in line with RDI's stated strategy of recycling
capital out of mature assets and into new growth opportunities.
Further details on the Company's progress against strategic
priorities will be provided in its interim results which will be
announced on Wednesday, 25 April 2018.
Mike Watters, Chief Executive, commented:
"The disposal of City Point, Leeds represents yet another
example of delivering value from the AUK acquisition. After two
years of owning this asset, we have delivered an excellent 20.6%
premium to the acquisition price, whilst also de-risking the
portfolio by reducing our exposure to a maturing regional office
investment market and an asset with a number of upcoming lease
breaks and expiries. We are confident that the progress on our
active recycling will support our relentless focus to deliver
superior, sustainable and growing distributions."
For further information, please contact:
RDI REIT P.L.C.
Mike Watters, Stephen Oakenfull, Janine Tel: +44 (0) 20 7811 0100
Ackermann
FTI Consulting
UK Public Relations Adviser
Dido Laurimore, Claire Turvey, Ellie Tel: +44 (0) 20 3727 1000
Sweeney
Instinctif Partners
SA Public Relations Adviser
Frederic Cornet Tel: +27 (0) 11 447 3030
JSE Sponsor
Java Capital Tel: + 27 (0) 11 722 3050
About RDI
RDI is a FTSE 250 UK Real Estate Investment Trust (UK-REIT)
committed to becoming the UK's leading income focused REIT. The
Company's income-led business model and strategic priorities are
designed to offer shareholders superior, sustainable and growing
income returns, with a target growth in underlying earnings per
share of 3%-5% across the medium term.
Income sustainability is underpinned by a diversified portfolio
and tenant base, with no overreliance on any one sector or tenant,
together with an efficient capital structure. The secure and
growing income stream is 39% indexed and has a WAULT of 7.4 years
to first break (8.5 years to expiry). This is complemented by an
average debt maturity of 7.3 years of which over 90% of interest
costs are either fixed or capped. The Company is focused on all
aspects impacting shareholder distributions and reports one of the
lowest cost ratios in the industry whilst maintaining a low cost of
debt. All figures as at 31 August 2017.
The Company owns properties independently valued at GBP1.5bn in
the United Kingdom and Germany, Europe's two largest and most
transparent property markets. RDI invests in assets with strong
property fundamentals spread across UK shopping centres, UK retail
parks, UK offices, UK logistics, UK hotels and German retail.
RDI 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 RDI, please refer to the Company's
website www.rdireit.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
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