Wrap Text
REDEFINE INTERNATIONAL P.L.C.
(Incorporated in the Isle of Man)
(Registered number 010534V)
LSE share code: RDI
JSE share code: RPL
ISIN: IM00B8BV8G91
('Redefine International' or 'the Company')
REDEFINE INTERNATIONAL COMPLETES AUK PORTFOLIO ACQUISITION
Redefine International, the opportunistic income focused FTSE 250 UK-REIT, is pleased to announce that it has successfully
completed on the acquisition of the second tranche of the Aegon UK ('AUK') portfolio for a purchase price of GBP204.7
million (GBP213.2 million including costs).
The total purchase price of the acquisition of the Combined AUK portfolio, including Banbury Cross Retail Park and after
adjusting for the disposal of 16 Grosvenor Street, London, (the 'Acquisition') was GBP460.7 million (GBP480.0 million
including costs). To support the funding of the transaction the Company utilised GBP252.0 million of bank debt, with the
balance funded from existing cash resources and the proceeds from the recent GBP115.0 million equity placement successfully
concluded on 23 February 2016. This results in an initial margin on the AUK facility of 1.90 per cent over LIBOR.
The AUK portfolio significantly increases the Company's existing portfolio, adding largely institutional quality properties
across which asset management progress has already exceeded initial expectations.
Mike Watters, CEO of Redefine International commented:
"The conclusion of this transformational off-market portfolio acquisition is a considerable achievement, particularly in a
market which is highly competitive for such institutional quality assets. Redefine International's portfolio has now increased
by approximately 50 per cent to GBP1.5 billion, whilst a significant, resilient and long term rental stream has been added,
supplementing our existing income. The portfolio also presents a range of future opportunities for enhancing rental income and
value through active asset management.
We are confident that this acquisition puts Redefine International in a strong position at this point in the property cycle and we
are looking forward to updating the market on the early progress made on the asset management plan as we work to integrate
the AUK assets into our existing portfolio."
For further information:
Redefine International P.L.C.
Michael Watters, Stephen Oakenfull, Janine Ackermann Tel: +44 (0) 20 7811 0100
FTI Consulting
UK Public Relations Adviser
Dido Laurimore, Claire Turvey, Ellie Sweeney Tel: +44 (0) 20 3727 1000
FTI Consulting
SA Public Relations Adviser
Max Gebhardt Tel: +27 (0) 11 214 2402
JSE Sponsor
Java Capital
Tel: +27 (0) 11 722 3050
Note to editors:
About Redefine International
Redefine International is an opportunistic, income focused FTSE 250 UK Real Estate Investment Trust (UK-REIT) committed
to delivering superior distributions to its shareholders throughout the property cycle, enabled by a diversified portfolio.
Our income driven total returns are underpinned by a quality and segmented portfolio, together with an efficient capital
structure. We are committed to delivering superior distributions to our shareholders, as is evidenced in our proven track record
in delivering market-leading dividends throughout the property cycle.
The property portfolio, independently valued at GBP1.5 billion, is focused in Europe's two strongest economies, being the
United Kingdom and Germany, within the retail, commercial and hotel sectors. The portfolio is weighted towards well-located
properties across a range of asset classes, which benefit from strong demand and from which we believe we can capture
income and value growth by attracting high calibre occupiers on long leases.
We hold a primary listing on the London Stock Exchange and a secondary listing on the Johannesburg Stock Exchange and are
included within the FTSE 250 and EPRA indices.
For more information on Redefine International, please refer to the Company's website www.redefineinternational.com.
Background to Acquisition
- On 7 September 2015 the Company published a circular to announce the conditional acquisition of the AUK Portfolio for
an aggregate consideration of GBP437.2 million (GBP455.7 million after costs).
- At the same time, it also announced that it had exchanged contracts to acquire Banbury Cross Retail Park for a
consideration of GBP52.5 million (GBP54.7 million including transaction costs) which completed on that day.
- Shareholder approval for the Acquisition was obtained on 25 September 2015.
- Tranche 1 of the Acquisition, including Banbury Cross, which comprised ten properties at a purchase price of GBP256.0
million (GBP266.8 million including costs), was funded with existing cash resources together with GBP155.0 million of
bank debt. Banbury Cross completed on 7 September 2015 and Tranche 1 completed on 2 October 2015.
- In December 2015 the Company announced the successful exchange of 16 Grosvenor Street, London pre-completion of
the second tranche of which this property formed part.
- Tranche 2 of the Acquisition, which comprised a further nine properties (following the sale of 16 Grosvenor Street,
London), completed on 1 March 2016. The reduced purchase price of GBP204.7 million (GBP213.2 including costs) was
funded through existing cash resources, bank debt and GBP115.0 million of cash raised through a successful equity
placing concluded on 23 February 2016.
Acquisition highlights, excluding 16 Grosvenor Street, London
- The AUK portfolio comprises 19, largely institutional quality assets which have strong property fundamentals and scope
for adding capital value through active asset management.
- The net initial yield is 5.6 per cent, with a topped up net initial yield (post expiry of rent free periods) of 5.8 per cent and a
reversionary yield of 6.0 per cent.
- The portfolio generates an annual passing rent of GBP28.3 million (increasing to GBP28.8 million after the expiry of rent
free periods) and with an estimated rental value of GBP29.2 million.
- By gross income, 54.8 per cent of the portfolio is comprised of retail properties (principally well-located retail parks), 22.3
per cent offices (principally located in London, the South East and the big six UK cities) and 22.9 per cent industrial
(principally three well located distribution centres).
- The weighted average unexpired lease term is 7.7 years to the first break option and 9.8 years to expiry.
- Although the portfolio has a high overall occupancy of 96.7 per cent. (by area) a number of asset management
opportunities have been identified to reduce voids and associated carrying costs, which will drive both higher income
returns and capital values.
- Early progress on asset management activities and identification of further value-add opportunities have outperformed
management's initial expectations.
- The valuation carried out on the portfolio in January 2016 valued the AUK portfolio (excluding 16 Grosvenor Street,
London) at GBP462.1 million, which is a GBP3.2 million increase on the valuation at the time of the announcement in
September 2015.
Gross
Rental
Combined AUK No. of Value Income Net Initial Reversionary WAULT
Portfolio summary Properties GBPm GBPm Yield % Yield % (years)
Tranche 1 (incl. Banbury Cross Retail Park)
Retail 6 158.3 11.2 6.7% 6.0% 9.4
Offices 1 5.4 0.5 8.5% 6.9% 5.1
Distribution 3 86.9 5.7 6.2% 5.9% 4.6
Sub Total 10 250.6 17.4 6.5% 6.0% 7.7
Tranche 2
Retail 3 73.9 4.3 5.5% 5.0% 11.3
Offices 5 123.2 5.8 3.8% 6.6% 5.0
Distribution 1 11.2 0.7 6.2% 6.6% 6.8
Sub Total 9 208.3 10.9 4.6% 6.0% 7.6
Total
Retail 9 232.2 15.5 6.3% 5.7% 10.0
Offices 6 128.6 6.3 4.0% 6.6% 5.0
Distribution 4 98.1 6.5 6.2% 6.0% 4.8
Total 19 458.9 28.3 5.6% 6.0% 7.7
Figures as at 31 August 2015 excluding Grosvenor Street
2 March 2016
Date: 02/03/2016 09:00:00 Supplied by www.sharenet.co.za
Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
Sharenet Sites 
