TIDMRDI
RNS Number : 4540F
RDI REIT PLC
21 February 2018
RDI REIT P.L.C.
("RDI" or the "Company")
(Registered number 010534V)
LSE share code: RDI
JSE share code: RPL
ISIN: IM00B8BV8G91
LEI: 2138006NHZUMMRYQ1745
LONDON SERVICED OFFICES PROPERTY TOUR
RDI, the FTSE 250 income focused UK-REIT, together with its new
strategic partner, Office Space in Town ("OSIT"), will host a
property tour for analysts and institutional investors today.
The event will include a presentation hosted by members of the
RDI management team and Giles Fuchs, the CEO of OSIT, followed by
site visits to three of the four recently acquired Central London
serviced offices.
The presentation will be made available on the Company's website
(www.rdireit.com) later today.
Mike Watters, CEO of RDI commented:
"We are pleased to have the opportunity to introduce the OSIT
management team and recently acquired serviced offices. These
well-located London assets are underpinned by strong real estate
fundamentals, whilst delivering attractive yields in excess of
6%.
"Since acquisition, trading performance has been positive and
ahead of management's expectations reflecting the strong occupier
demand for flexible, cost efficient office space.
"We will be hosting a number of property tours in the future to
showcase the income-producing opportunities that these properties
present."
For further information and to be included on future property
tours:
RDI REIT P.L.C.
Mike Watters, Stephen Oakenfull, Janine Tel: +44 (0) 20 7811
Ackermann 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, Lizelle du Toit Tel: +27 (0) 11 447
3030
Note to editors:
Acquisition summary
The Company announced on 15 January 2018 that it is expanding in
to flexible serviced offices.
-- Four Central London serviced offices valued at GBP161.7 million
-- The equity consideration of GBP72.5 million reflects an 80%
interest in the portfolio and includes transaction costs of less
than 1.0%
-- Existing debt facilities of GBP73.5 million reflects an LTV
of 45%, in line with the Company's strategic priority to reduce
Group leverage
-- Implied net initial yield of over 6.0%
-- The net cash yield on equity is anticipated to be in excess of 9.0%
-- Office Space in Town ("OSIT"), the Company's new strategic
partner, will retain the remaining 20% interest in the portfolio
and receive an EBITDA based management fee to ensure strong
alignment of interests
-- London is the leading serviced office market globally, where
structural and behavioural changes are driving strong demand for
flexible, cost efficient space
-- OSIT provides a premium flexible office service at mid-market
rates which has consistently delivered high levels of occupancy and
client satisfaction
-- All four properties have been extensively refurbished and
redeveloped by OSIT in the last four years
-- All assets are strategically positioned within short walking
distances of London Underground stations
-- In an exciting and growing market, this acquisition presents
a scalable platform which could be easily integrated with future
potential acquisitions and which complements RDI's existing
portfolio
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
About Office Space in Town
Office Space in Town ("OSIT") was established in 2009 by a
brother and sister team, Giles and Niki Fuchs, who have both been
involved in the Serviced Office Industry for over 25 years.
It is a service company that offers businesses and individuals
workspace solutions through providing serviced offices, managed
offices, co-working space, meeting rooms and virtual offices in
London, Cardiff, Northampton, and Edinburgh.
The company currently manages six London and five regional
flexible offices, including the four offices acquired by RDI.
For more information on OSIT, please refer to the company's
website www.officespaceintown.com
Pro forma portfolio
Annual-ised
% of gross EPRA Weighted EPRA
portfolio Market rental topp-ed average voids
Pro forma by market value income ERV EPRA up Reversion-ary lease (by
portfolio value (GBPm) (GBPm) (GBPm) NIY yield yield length ERV) % Indexed
UK Shopping
Centres 19% 316.5 26.2 27.1 6.4% 6.8% 8.0% 8.0 3.3% 27.5%
UK Retail
Parks 10% 169.9 11.4 10.8 5.8% 6.2% 6.0% 7.7 3.8% 4.7%
UK Other
Retail 2% 28.3 2.3 2.3 7.5% 7.5% 7.8% 16.6 - -
-------------- ---------- -------- ------------ ------- ----- -------- -------------- --------- ------ ----------
UK Retail 31% 514.7 39.9 40.2 6.3% 6.6% 7.3% 8.4 3.2% 19.4%
UK Offices
- Greater
London 6% 90.2 3.4 4.4 2.8% 3.3% 4.6% 5.1 4.1% 23.7%
UK Offices
- Flexible
London 10% 161.7 10.3 10.3 6.0% 6.0% 6.0% 2.2 5.6% -
UK Offices
- Regions 7% 113.6 9.6 9.2 6.9% 7.7% 7.6% 3.3 4.2% 23.0%
UK
Distribution
& Industrial 7% 117.6 6.3 7.5 4.8% 5.0% 6.0% 5.0 3.7% -
UK Automotive 3% 42.8 2.9 2.3 6.3% 6.3% 5.0% 12.3 - 100.0%
-------------- ---------- -------- ------------ ------- ----- -------- -------------- --------- ------ ----------
UK Commercial 33% 525.9 32.5 33.7 5.4% 5.7% 6.0% 4.3 4.2% 18.2%
Greater
London
RBL
portfolio 11% 184.4 11.9 12.5 6.0% 6.0% 6.4% 8.3 - -
IHL Hotels
- RBL
Portfolio 5% 75.4 6.0 6.0 7.5% 7.5% 7.5% 10.0 - -
Edinburgh 2% 39.1 2.6 3.0 6.1% 6.1% 7.1% 8.5 - 3.4%
IHL Hotels
- Travelodge
Portfolio 2% 29.0 1.6 1.6 5.3% 5.3% 5.3% 21.1 - 100.0%
Enfield
Travelodge 1% 16.1 0.7 0.7 4.2% 4.2% 4.2% 29.9 - 100.0%
-------------- ---------- -------- ------------ ------- ----- -------- -------------- --------- ------ ----------
UK Hotels 21% 344.0 22.8 23.8 6.2% 6.2% 6.5% 10.3 - 10.5%
-------------- ---------- -------- ------------ ------- ----- -------- -------------- --------- ------ ----------
Total UK 85% 1,384.6 95.2 97.7 5.9% 6.2% 6.6% 7.5 2.8% 16.9%
German
Shopping
Centres 11% 181.3 9.4 10.6 4.2% 4.3% 5.5% 4.8 0.6% 94.5%
German
Supermarkets
and Retail
Parks 4% 68.7 4.8 4.9 5.9% 5.9% 6.6% 5.2 3.2% 94.4%
Europe 15% 250.0 14.2 15.5 4.7% 4.7% 5.8% 4.9 1.4% 94.5%
Total 100% 1,634.6 109.4 113.2 5.7% 6.0% 6.5% 7.1 2.6% 27.0%
-------------- ---------- -------- ------------ ------- ----- -------- -------------- --------- ------ ----------
Pro forma reflects the portfolio as at 31 August 2017 adjusted
for major transactions post year end.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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