RDI REIT PLC RDI secures significant leasing transactions
July 29 2019 - 1:01AM
RNS Non-Regulatory
TIDMRDI
RDI REIT PLC
29 July 2019
RDI REIT P.L.C.
("RDI" or the "Company")
(Registered number 010534V)
LSE share code: RDI
JSE share code: RPL
ISIN: IM00BH3JLY32
LEI: 2138006NHZUMMRYQ1745
RDI secures significant leasing transactions across 400,000 sqft
including new leases, lease renewals and regears
RDI, the income focused UK-REIT, is pleased to announce a number
of successful new leasing transactions and lease extensions on
GBP3.65m of annualised rental income, reflecting the Company's
continued strong operational and asset management performance. This
reflects an increase in rental income of GBP0.43m and includes the
letting of 13,000 sqft of previously vacant space. Portfolio
occupancy, on a like-for-like basis, remains high at 98.0% (28
February 2019: 97.5%).
Canbury Business Park, Kingston
At Canbury Business Park, the existing lease with Sitel over the
37,457 sqft office component, which was due to expire in September
2019, has been surrendered in return for a new five-year lease over
24,000 sqft. The new rent of GBP672,000 p.a. equates to GBP28.00
psf. The remaining space has been let to Interval International on
a 10-year term with a five-year break at GBP29.50 psf. The business
park which comprises 13 small business and light industrial units
together with office space, was acquired in December 2017 at a net
initial yield of 5.8%. Since then the office space has been
refurbished at a total cost of GBP1.5 million (including tenants'
incentives), delivering a marginal yield on total cost of
c.6.0%.
The site, which is within a short walking distance of the
Kingston upon Thames mainline railway station, provides a number of
longer-term residential-led development opportunities. These latest
leasing transactions provide secure income for a five-year period
while re-development opportunities are reviewed.
Farnborough, Southwood Business Park
Two previously vacant units have been let at between GBP13.50
psf and GBP14.00 psf delivering an annualised rent of GBP175,295.
The industrial estate was acquired in September 2019 at a net
initial yield of 6.2% including a vacancy of 8.1% and an average
passing rent of GBP12.90 psf. The net initial yield will increase
to 7.1% following the new lettings, with the asset now fully
occupied. In addition, a number of regears and rent reviews on the
park have been completed, delivering a rental uplift of GBP300,000,
an 18% increase since acquisition.
Waterside, Leeds
A new 10-year lease has completed with the existing sole tenant;
the Secretary of State for Housing, Communities and Local
Government. The rent remains unchanged at GBP398,650 p.a. (GBP11.00
psf) with the equivalent of 26 months' rent free agreed in the form
of a stepped rent profile.
Express Park Distribution Centre, Bridgwater
The lease on Unit 3B has been extended by 16 years from May 2020
to May 2036 with a tenant's break option in May 2030. The rent
remains unchanged at GBP535,000 p.a. (GBP5.25 psf) with a rent-free
period of 13 months.
Break options on Unit 5 in May 2021 and May 2031 have been
removed providing a lease until May 2036 and a term certain of over
16 years, in return for a 13 month rent free period.
Following these lease extensions, the overall WAULT for Express
Park has increased from 3.2 years to 9.6 years on GBP3 million of
rental income.
Adrian Horsburgh, Property Director at RDI, commented:
"These recent lettings provide a snapshot of the successes we
are achieving across the different sectors in which we operate,
demonstrating our commitment to continuously improve the rental
tone and increase our WAULT. Furthermore, occupancy across the
portfolio remains high at 98.0%, up from 97.5% in February,
supporting our strategic priority of income generation."
For further information:
RDI REIT P.L.C.
Mike Watters, Stephen Oakenfull Tel: +44 (0) 20 7811
0100
FTI Consulting
UK Public Relations Adviser
Dido Laurimore, Claire Turvey, Ellie Sweeney Tel: +44 (0) 20 3727
1000
Instinctif Partners
SA Public Relations Adviser
Frederic Cornet Tel: +27 (0) 11 447
3030
JSE Sponsor
Java Capital Tel: + 27 (0) 11
722 3050
Note to editors:
About RDI
RDI is an income focused UK-REIT with a diversified portfolio
invested principally in the UK. The investment approach is driven
by an in depth understanding of occupational demand including the
impact of technology, transport and infrastructure investment. The
portfolio has been repositioned in recent years to increase its
weighting to London and the South East and to provide greater
exposure to our leading hotel and serviced office operating
platforms.
RDI is committed to delivering attractive income led total
returns across the real estate cycle. The current strategic
objectives of a lower leverage capital structure and more focused
allocation of capital are targeted at delivering an industry
leading and sustainable income return.
RDI is a UK Real Estate Investment Trust (UK-REIT) and holds a
primary listing on the London Stock Exchange and a secondary
listing on the JSE. The Company 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
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