Friday, 15 July 2016 18:15

Exposure to Germany helps shelter Redefine International amid post-Brexit jitters about UK

Written by
Rate this item
(0 votes)

Redefine International says its diversified portfolio has been less affected by the Brexit vote than other UK-focused property funds.

 Michael Watters Redefine International

Redefine International says its diversified portfolio, which has exposure to Germany, has been less affected by the Brexit vote than other UK-focused property funds.

The company has also managed to retain those investors who seek income payouts.

CEO Mike Watters said on Tuesday that the company had weathered the effects of the Brexit referendum better than a number of other UK-focused property groups.

“We firmly believe the diversified nature of the Redefine International portfolio, with 21% of market values located in Germany, together with our income focus and long average lease length, will prove to be defensive in light of the uncertainty following the UK’s vote to exit from the EU.

“We remain comfortable with our debt profile, with an average debt maturity of 7.4 years, and no significant debt maturing until 2020,” said Watters.

Redefine said it had made progress in generating returns from its recently acquired Aegon UK (AUK) portfolio that it bought for £490m.

After the EU referendum result, Redefine International completed two leases in the AUK portfolio totalling £600,000, which represented a 10% rise in estimated rental value.

Since exchanging contracts on the AUK portfolio in September 2015, the company has increased the portfolio’s weighted average unexpired lease term from seven-and-a-half years to eight years, saved £300,000 in vacancy costs, and achieved an additional uplift of £600,000 to annualised rental income, representing a 5% increase on estimated rental value.

Watters said completed refinancing activities since its halfyear results had reduced the cost of debt to 3.4%, from 3.6%.

“We are pleased with the level of income-enhancing activity achieved on the AUK portfolio to date. Investors are attracted to the fact that we distribute strong regular income payouts. I believe this is why post the Brexit vote, we have seen our shares sold down but, not as much as some other counters have,” said Watters.

source" Business Day

Last modified on Friday, 15 July 2016 18:26

Most Popular

Signatura launches Cosmopolitan lifestyle on Bantry Bay/Sea Point cusp

Mar 28, 2017
Sea_PointCusp
Some of the most exclusive real estate in the country – Cape Town’s Atlantic Seaboard –…

Corobrik contributes to Inner City rejuvenation.

Mar 30, 2017
Heritage View development Brickfields Newtown Johannesburg
The quality, durability and overall affordability of Corobrik’s face brick range has seen…

Sea Point's Mojo Market launches this April 2017

Apr 05, 2017
Mojo Market
An entire block of a Sea Point retail space will be dedicated to a new, seven-day food…

Investing in student accommodation: pros and cons

Mar 31, 2017
Bill Rawson CEO
The recent protests at universities and colleges across SA have caused many to question…

Swapping power for change in SA's financial capital, Sandton Central

Mar 25, 2017
Sandton Central Elaine Jack
It will be lights out for Sandton Central, Joburg's premier business, shopping and…