RDI REIT PLC Forward Funding of £26m Distribution Development (5371A)
September 13 2018 - 2:00AM
UK Regulatory
TIDMRDI
RNS Number : 5371A
RDI REIT PLC
13 September 2018
RDI REIT P.L.C.
("RDI" or the "Company" or the "Group")
(Registration number 010534V)
LSE share code: RDI
JSE share code: RPL
ISIN: IM00B8BV8G91
LEI: 2138006NHZUMMRYQ1745
RDI COMPLETES GBP26.0 MILLION DISTRIBUTION FORWARD FUNDING
OPPORTUNITY IN BICESTER
AND DISPOSES OF LOCHSIDE EDINBURGH FOR GBP13.1 MILLION
RDI, the income focused UK-REIT, today announces that it has
completed a forward funding agreement to acquire two high quality
distribution units in Bicester totalling 288,000 sqft (26,800 sqm)
as well as completing the disposal of the Lochside office in
Edinburgh. These transactions are in line with RDI's strategy of
recycling capital out of mature assets and into new growth
opportunities.
Increasing exposure to logistics
RDI has acquired approximately 13.5 acres of land in Bicester as
part of a GBP26.0 million forward funding opportunity with Albion
Land to acquire two high quality distribution units of 120,000 sqft
and 168,000 sqft respectively. The site is part of the successful
Link 9 industrial and distribution development with good access to
the M40 and backed by a strong occupier market.
Construction of phase 1 will commence immediately with an
approximate eight-month development programme with phase 2
anticipated to commence before May 2019 with completion in late
2019. Both units will be developed on a speculative basis, however
early stage discussions have already commenced with potential
occupiers. The transaction provides an opportunity to increase
RDI's exposure to well-located modern distribution units at an
anticipated yield on cost of 6.5% once let.
Continued progress in recycling low growth assets at a
premium
RDI completed the disposal of the 60,177 sqft (5,591 sqm)
Lochside Edinburgh office on 31 August 2018 for GBP13.1 million
representing a net initial yield of 5.9% and a 13.7% premium to the
last reported market value.
The asset was originally acquired as part of the Company's AUK
Portfolio acquisition in March 2016 for GBP11.0 million at which
point it was 18% vacant. Through active asset management the
property has been fully let which has supported the sales price and
premium to book value.
Mike Watters, Chief Executive, commented:
"This acquisition once again highlights our disciplined approach
to improving the quality of our income focused portfolio, with
disposal proceeds being promptly redeployed into growth
opportunities. The acquisition of high quality distribution assets
in Bicester, through a forward funding agreement, presents a clear
opportunity to increase our exposure to a sector with strong
structural support and rental growth prospects, at an attractive
entry price."
We look forward to providing further details on our progress
against strategic priorities at our year end results presentation
on Thursday, 25 October 2018, following the release of the year end
results."
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 FTSE All
Share, 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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