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

Strong demand boosts Balwin as it claws back three months of no construction activity due to covid lockdowns

May 18, 2021
The Huntsman 2
JSE listed Balwin Properties, a developer that cares about environmentally responsible…

Construction kicks-off at the R500-million Boardwalk Mall

May 17, 2021
Architects presective of the exterior  of the Boardwalk Mall
Flanagan & Gerard Group and Emfuleni Resorts, a subsidiary of Sun International (JSE:…

Growthpoint leverages development prowess to re-imagine La Lucia Mall as a vibrant suburban mixed-use experience

May 17, 2021
Growthpoint_Kent_La_Lucia_Residential_Apartments
Growthpoint Properties (JSE: GRT) is applying its development expertise to unlock…

Residential sectional title sales again on the rise

May 27, 2021
Andrew_Golding_Golding_PropertyGroup
Over the past 15 years, the sectional title market in South Africa has become entrenched…

Successful degearing and continued dividend payments has allowed Investec Property Fund to continue rewarding shareholders

May 19, 2021
Andrew_Wooler_IPF (1)
Investec Property Fund, (“IPF”, or “the Fund”) today announced a resilient set of…

Please publish modules in offcanvas position.