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RDI REIT PLC - London serviced offices property tour

Release Date: 21/02/2018 11:00
Code(s): RPL     PDF:  
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London serviced offices property tour

RDI REIT P.L.C.
(formerly Redefine International P.L.C.)
(Incorporated in the Isle of Man)
(Registered number 010534V)
LSE share code: RDI
JSE share code: RPL
LEI: 2138006NHZUMMRYQ1745
ISIN: IM00B8BV8G91
(“RDI” or the “Company”)


LONDON SERVICED OFFICES PROPERTY TOUR


RDI, the FTSE 250 income focused UK-REIT, together with its new strategic partner, Office Space in Town
(“OSIT”), will host a property tour for analysts and institutional investors today.

The event will include a presentation hosted by members of the RDI management team and Giles Fuchs, the CEO of
OSIT, followed by site visits to three of the four recently acquired Central London serviced offices.
The presentation will be made available on the Company’s website (www.rdireit.com) later today.

Mike Watters, CEO of RDI commented:

“We are pleased to have the opportunity to introduce the OSIT management team and recently acquired serviced
offices. These well-located London assets are underpinned by strong real estate fundamentals, whilst delivering
attractive yields in excess of 6%.

“Since acquisition, trading performance has been positive and ahead of management’s expectations reflecting the
strong occupier demand for flexible, cost efficient office space.

“We will be hosting a number of property tours in the future to showcase the income-producing opportunities that
these properties present.”

For further information and to be included on future property tours:

RDI REIT P.L.C.
Mike 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

Instinctif Partners
SA Public Relations Adviser
Frederic Cornet, Lizelle du Toit                                    Tel: +27 (0) 11 447 3030


Note to editors:

Acquisition summary

The Company announced on 15 January 2018 that it is expanding in to flexible serviced offices.

-   Four Central London serviced offices valued at £161.7 million
-   The equity consideration of £72.5 million reflects an 80% interest in the portfolio and includes transaction costs of
    less than 1.0%
-   Existing debt facilities of £73.5 million reflects an LTV of 45%, in line with the Company’s strategic priority to
    reduce Group leverage
-   Implied net initial yield of over 6.0%
-   The net cash yield on equity is anticipated to be in excess of 9.0%
-   Office Space in Town (“OSIT”), the Company's new strategic partner, will retain the remaining 20% interest in
    the portfolio and receive an EBITDA based management fee to ensure strong alignment of interests
-   London is the leading serviced office market globally, where structural and behavioural changes are driving strong
    demand for flexible, cost efficient space
-   OSIT provides a premium flexible office service at mid-market rates which has consistently delivered high levels
    of occupancy and client satisfaction
-   All four properties have been extensively refurbished and redeveloped by OSIT in the last four years
-   All assets are strategically positioned within short walking distances of London Underground stations
-   In an exciting and growing market, this acquisition presents a scalable platform which could be easily integrated
    with future potential acquisitions and which complements RDI’s existing portfolio

About RDI

RDI is a FTSE 250 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 39% indexed and has a
WAULT of 7.4 years to first break (8.5 years to expiry). This is complemented by an average debt maturity of 7.3
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.
All figures as at 31 August 2017.

The Company owns properties independently valued at £1.5bn in the United Kingdom and Germany, Europe’s two
largest and most transparent property markets. RDI invests in assets with strong property fundamentals spread across
UK shopping centres, UK retail parks, UK offices, UK logistics, UK hotels and German retail.

RDI holds a primary listing on the London Stock Exchange and a secondary listing on the Johannesburg Stock
Exchange and is included within the FTSE 250, EPRA and GPR indices.

For more information on RDI, please refer to the Company’s website www.rdireit.com

About Office Space in Town

Office Space in Town (“OSIT”) was established in 2009 by a brother and sister team, Giles and Niki Fuchs, who have
both been involved in the Serviced Office Industry for over 25 years.

It is a service company that offers businesses and individuals workspace solutions through providing serviced offices,
managed offices, co-working space, meeting rooms and virtual offices in London, Cardiff, Northampton, and
Edinburgh.

The company currently manages six London and five regional flexible offices, including the four offices acquired by
RDI.

For more information on OSIT, please refer to the company’s website www.officespaceintown.com

Pro forma portfolio

                                                Annual-
                           % of                     ised
                       portfolio                  gross                        EPRA      Rever     Weighted     EPRA
                              by     Market       rental                       topp-     sion-      average     voids
                          market      value      income     ERV     EPRA       ed up       ary        lease       (by        %
Pro forma portfolio        value       (£m)        (£m)     (£m)     NIY       yield     yield       length       ERV)     Indexed


UK Shopping Centres          19%       316.5        26.2    27.1     6.4%      6.8%       8.0%          8.0       3.3%      27.5%
UK Retail Parks              10%       169.9        11.4    10.8     5.8%      6.2%       6.0%          7.7       3.8%       4.7%
UK Other Retail               2%        28.3         2.3     2.3     7.5%      7.5%       7.8%         16.6          -          -
UK Retail                    31%       514.7        39.9    40.2     6.3%      6.6%       7.3%          8.4       3.2%      19.4%
UK Offices - Greater
London                        6%        90.2         3.4     4.4     2.8%      3.3%       4.6%          5.1       4.1%      23.7%
UK Offices - Flexible
London                       10%       161.7        10.3    10.3     6.0%      6.0%       6.0%          2.2       5.6%          -
UK Offices - Regions          7%       113.6         9.6     9.2     6.9%      7.7%       7.6%          3.3       4.2%      23.0%
UK Distribution &
Industrial                    7%       117.6         6.3     7.5     4.8%      5.0%       6.0%          5.0       3.7%          -
UK Automotive                 3%        42.8         2.9     2.3     6.3%      6.3%       5.0%         12.3          -     100.0%
UK Commercial                33%       525.9        32.5    33.7     5.4%      5.7%       6.0%          4.3       4.2%      18.2%
Greater London RBL
portfolio                    11%       184.4        11.9    12.5     6.0%      6.0%       6.4%          8.3          -          -
IHL Hotels - RBL
Portfolio                     5%        75.4         6.0     6.0     7.5%      7.5%       7.5%         10.0          -          -
Edinburgh                     2%        39.1         2.6     3.0     6.1%      6.1%       7.1%          8.5          -       3.4%
IHL Hotels -
Travelodge Portfolio          2%        29.0         1.6     1.6     5.3%     5.3%        5.3%         21.1          -     100.0%
Enfield Travelodge            1%        16.1         0.7     0.7     4.2%     4.2%        4.2%         29.9          -     100.0%
UK Hotels                    21%       344.0        22.8    23.8     6.2%     6.2%        6.5%         10.3          -      10.5%
Total UK                     85%     1,384.6        95.2    97.7     5.9%     6.2%        6.6%          7.5       2.8%      16.9%
German Shopping
Centres                      11%       181.3         9.4    10.6     4.2%      4.3%       5.5%          4.8       0.6%      94.5%
German Supermarkets
and Retail Parks              4%        68.7         4.8     4.9     5.9%      5.9%       6.6%          5.2       3.2%      94.4%
Europe                       15%       250.0        14.2    15.5     4.7%      4.7%       5.8%          4.9       1.4%      94.5%
Total                       100%     1,634.6       109.4   113.2     5.7%     6.0%        6.5%          7.1       2.6%      27.0%
 

Pro forma reflects the portfolio as at 31 August 2017 adjusted for major transactions post year end.


21 February 2018

Sponsor
Java Capital

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