RDI REIT PLC Acquisition of Industrial Estate for £26.3 million (7707B)
27 September 2018 - 4:00PM
UK Regulatory
TIDMRDI
RNS Number : 7707B
RDI REIT PLC
27 September 2018
RDI REIT P.L.C.
("RDI" or the "Company")
(Registration number 010534V)
LSE share code: RDI
JSE share code: RPL
ISIN: IM00B8BV8G91
LEI: 2138006NHZUMMRYQ1745
RDI COMPLETES ACQUISITION OF GBP26.3 MILLION INDUSTRIAL ESTATE
IN FARNBOROUGH
RDI, the income focused UK-REIT, today announces that it has
completed the acquisition of Southwood Business Park, an industrial
estate in Farnborough, Hampshire for a total consideration of
GBP26.3 million, reflecting a net initial yield of 6.2%. The
investment is in line with RDI's stated strategy to increase its
exposure to assets underpinned by strong demographics and occupier
demand supported by structural change.
Southwood Business Park is within an established commercial area
in Farnborough and conveniently located within the M3 corridor
approximately 41 miles from Central London. The nine-acre estate
consists of 18 warehouse units totalling 154,849 sqft (14,385 sqm)
with a low site cover of 37%. The asset is presently 91.9% occupied
on a weighted average lease length of over five years to expiry.
There is limited available space within competing industrial units
in the surrounding area, which have all demonstrated a strong track
record of high occupancy, with historic demand being driven by
research and development occupiers linked to the aerospace and
technology sectors.
The asset currently produces net income of GBP1.75 million with
average rents of GBP12.90 per sqft. The acquisition provides an
attractive near-term yield and opportunities to support medium to
long term income growth through clearly identified asset management
initiatives.
Mike Watters, Chief Executive, commented:
"This acquisition provides us with an increased exposure to the
strong performing South East industrial market, whilst achieving an
attractive near-term yield of 6.2% in a competitive investment
climate. Our ability to execute this transaction once again
highlights our disciplined approach to enhancing the quality of our
portfolio and our continued focus on delivering superior,
sustainable and growing income for our shareholders."
The Company will provide further details on our progress against
strategic priorities at its year end results which will be
announced on Thursday, 25 October 2018.
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 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 25.9% indexed and has a WAULT of 6.8 years
to first break (8.2 years to expiry). This is complemented by an
average debt maturity of 7.0 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.
The Company owns properties independently valued at GBP1.6bn in
the United Kingdom and Germany, Europe's two largest, liquid and
transparent property markets. RDI invests in assets with strong
property fundamentals spread across UK offices (including London
serviced offices), UK logistics, UK shopping centres, UK retail
parks, UK hotels and German retail. RDI is well placed to take
advantage of the increasing occupier requirement for real estate
owners to become high quality service providers, given its scalable
operational platforms and nearly a third of the portfolio invested
in hotels and London serviced offices.
RDI holds a primary listing on the London Stock Exchange and a
secondary listing on the JSE and is included within the EPRA, GPR,
JSE All Property and JSE Tradeable Property indices.
For more information on RDI, please refer to the Company's
website www.rdireit.com
All figures as at 28 February 2018
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END
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