Secure Income REIT PLC £196m Travelodge portfolio acquisition completion (7632N)
October 28 2016 - 6:09AM
UK Regulatory
TIDMSIR
RNS Number : 7632N
Secure Income REIT PLC
28 October 2016
28 October, 2016
Secure Income REIT Plc
Completion of GBP196 million Travelodge portfolio
acquisition
The Board of Secure Income REIT Plc (the "Company"), the
specialist long term income REIT, is pleased to announce that,
following its announcement of 8 September 2016, it has completed
the GBP196 million acquisition of a portfolio of 55 Travelodge
Hotels.
The portfolio comprises 55 hotels with a weighted average
unexpired lease term of 27 years with upwards only RPI linked rent
reviews throughout the term, let to Travelodge Hotels Limited, the
UK's second largest budget hotel brand.
The GBP196 million total cost of the portfolio includes purchase
costs and reflects a yield of 7%. The consideration for the
purchase has been financed by the proceeds of the placing of 46.9
million new ordinary shares in the Company at 298.6 pence per
share, which raised gross proceeds of GBP140 million (net proceeds
GBP137.5 million), as announced on 4 October 2016, and a new GBP60
million seven year non-recourse secured debt facility arranged by
M&G (raising net proceeds of GBP58.5 million).
In addition to increasing the size and diversification of the
portfolio, the acquisition provides a number of benefits to the
Company and its shareholders including an anticipated 14% increase
in the Company's dividend yield from a current level of 3.9%, based
on 30 June 2016 EPRA NAV, to 4.5% on the Placing Price. In
addition, the Company's long term contracted rental income, with
fixed and RPI linked rent reviews should continue to result in
increased net rent every year and hence provides attractive
dividend growth prospects which the directors estimate should
equate to 6.5% per annum over the next six years. Furthermore, the
Company's Net LTV ratio will reduce from 59.5% to 56.0%.
For further information please contact:
Secure Income REIT Plc +44 20 7647 7647
Sandy Gumm
Stifel Nicolaus Europe
Limited (Nominated Adviser) +44 20 7710 7600
David Arch
Tom Yeadon
FTI Consulting +44 20 3727 1000
Richard Sunderland
Claire Turvey
About Secure Income REIT
Secure Income REIT floated as a Real Estate Investment Trust on
the AIM segment of the London Stock Exchange in June 2014. Upon
Admission, shares were issued at 174p representing a market
capitalisation of GBP293 million, which has subsequently grown to
in excess of GBP710 million following the heavily over-subscribed
share placing in October 2016, raising gross proceeds of GBP140
million to finance the acquisition of a portfolio of 55 Travelodge
hotels.
The Company specialises in generating long term, inflation
protected, secure income from real estate investments. Its
investment strategy is designed to satisfy investors' growing
requirements for high quality, safe, inflation protected income
flows.
The Company is advised by Prestbury Investments LLP which was
adviser to Max Property Group plc until August 2014, when Max
Property Group plc was sold to Blackstone Group. Prestbury
Investments LLP is a partnership of real estate and finance
professionals including Nick Leslau, Mike Brown, Tim Evans, Ben
Walford and Sandy Gumm.
The Company's Board is chaired by Martin Moore and also
comprises three further independent Directors in Leslie Ferrar,
Jonathan Lane and Ian Marcus, as well as three members of the
Prestbury Team in Nick Leslau, Mike Brown and Sandy Gumm.
This information is provided by RNS
The company news service from the London Stock Exchange
END
ACQGMMZGMRVGVZM
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