Redefine International PLC £29 Million Manchester Office Disposal (4878V)
January 31 2017 - 1:00AM
UK Regulatory
TIDMRDI
RNS Number : 4878V
Redefine International PLC
31 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 GBP29 MILLION MANCHESTER OFFICE
DISPOSAL
Redefine International, the FTSE 250 income-focused UK-REIT,
announces that it has sold 201 Deansgate in Manchester for GBP29.15
million.
The office block was originally acquired as part of the AUK
Portfolio in March 2016 and the sale price represents a net initial
yield of 3.6% and a 14.3% premium to the last reported book value.
The geared IRR over the investment period was 22%.
The property, which has been acquired by Aviva Investors, acting
on behalf of Essex County Council, provides 7,776 sqm (83,688 sq
ft) of office space and delivers annual net rental income of GBP1.1
million with a WAULT of 4.1 years.
The proceeds from the sale will be used to fund the refinancing
and extension of certain of the Company's debt facilities. Terms
have been agreed to extend the term of certain debt facilities with
the Company contributing approximately GBP25.0m of equity to reduce
the loans. The improvement to the terms of the debt facilities will
deliver an attractive return on the equity contribution of
approximately 10% per annum. Further details on the Company's plans
for the evolution of the capital structure will be provided at the
Capital Markets Day on Monday 6 February 2017.
Mike Watters, CEO of Redefine International commented:
"The disposal of 201 Deansgate represents yet another
significant value enhancing opportunity that the AUK Portfolio
offers the Company. After less than a year of ownership, we have
delivered an excellent 14.3% premium to book value on behalf of our
investors, whilst also de-risking the portfolio from a number of
upcoming lease breaks due on the property. The proceeds from the
disposal will be put towards reducing debt on favourable
terms."
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 ratio's 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.
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.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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