RDI disposes of leeds for £26.1 Million

Posted On Wednesday, 11 April 2018 03:00 Published by
Rate this item
(0 votes)

RDI, the FTSE 250 income focused UK-REIT, which has a primary listing on the London Stock Exchange and a secondary listing on the Johannesburg Stock Exchange, today announces that it has exchanged contracts for the disposal of City Point in Leeds for £26.05 million. 

010

The 5,699 sqm (61,379 sqft) office was originally acquired as part of the Company’s AUK Portfolio acquisition in March 2016 for an acquisition price of £21.6 million with over 17% vacancy. In January 2017, RDI let 1,022 sqm (11,000 sqft) to Blacks Solicitors LLP, bringing the asset to full occupancy. The sale price represents a net initial yield of 5.8% and a 15.3% premium to the last reported market value. The geared internal rate of return (‘IRR’) over the investment period was over 20%. 

012

The property, which has been acquired by West Midlands Pension Fund, delivers total gross annualised rental income of £1.6 million with a WAULT of 3.7 years. 

026

The disposal is in line with RDI’s stated strategy of recycling capital out of mature assets and into new growth opportunities. Further details on the Company’s progress against strategic priorities will be provided in its interim results which will be announced on Wednesday, 25 April 2018.

Mike Watters, Chief Executive, commented:

City-points-leeds

“The disposal of City Point, Leeds represents yet another example of delivering  value from the AUK acquisition. After two years of owning this asset, we have delivered an excellent 20.6% premium to the acquisition price, whilst also de-risking the portfolio by reducing our exposure to a maturing regional office investment market and an asset with a number of upcoming lease breaks and expiries. We are confident that the progress on our active recycling will support our relentless focus to deliver superior, sustainable and growing distributions.“

Last modified on Tuesday, 17 April 2018 14:35

Most Popular

Deeds Office reopening good news for sellers and buyers of property, as well as the property industry

May 01, 2020
Andrew Golding Golding Property Group
Deeds Office reopening good news for sellers and buyers of property, as well as the…

Wide-spread implications for South Africa’s real estate market following COVID-19

May 05, 2020
JLL_Logo
JLL, one of the world’s leading real estate investment and advisory firms, today released…

Deeds office reopen their doors to the public

May 09, 2020
Carlize Knoesen
The Department Agriculture, Land Reform and Rural Development has announced the reopening…

Relooking green buildings in the future of the covid-19 pandemic

May 01, 2020
Brett Chrystal
The Covid-19 lockdown has offered us an unexpected opportunity to reflect on our…

SA REIT appoints Joanne Solomon as its first CEO

May 05, 2020
Joanne Solomon new CEO SA REIT Association
With her wealth of financial and property sector experience, Joanne Solomon has been…

Please publish modules in offcanvas position.