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RDI REIT PLC - RDI completes acquisition of 26.3 million industrial estate in Farnborough

Release Date: 27/09/2018 08:00
Code(s): RPL     PDF:  
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RDI completes acquisition of £26.3 million industrial estate in Farnborough

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")


RDI COMPLETES ACQUISITION OF £26.3 MILLION INDUSTRIAL ESTATE IN FARNBOROUGH


RDI, the income focused UK-REIT, today announces that it has completed the acquisition of Southwood
Business Park, an industrial estate in Farnborough, Hampshire for a total consideration of £26.3 million,
reflecting a net initial yield of 6.2%. The investment is in line with RDI's stated strategy to increase its
exposure to assets underpinned by strong demographics and occupier demand supported by structural change.

Southwood Business Park is within an established commercial area in Farnborough and conveniently located
within the M3 corridor approximately 41 miles from Central London. The nine-acre estate consists of 18
warehouse units totalling 154,849 sqft (14,385 sqm) with a low site cover of 37%. The asset is presently 91.9%
occupied on a weighted average lease length of over five years to expiry. There is limited available space
within competing industrial units in the surrounding area, which have all demonstrated a strong track record
of high occupancy, with historic demand being driven by research and development occupiers linked to the
aerospace and technology sectors.

The asset currently produces net income of £1.75 million with average rents of £12.90 per sqft. The acquisition
provides an attractive near-term yield and opportunities to support medium to long term income growth
through clearly identified asset management initiatives.

Mike Watters, Chief Executive, commented:

"This acquisition provides us with an increased exposure to the strong performing South East industrial
market, whilst achieving an attractive near-term yield of 6.2% in a competitive investment climate. Our ability
to execute this transaction once again highlights our disciplined approach to enhancing the quality of our
portfolio and our continued focus on delivering superior, sustainable and growing income for our
shareholders."

The Company will provide further details on our progress against strategic priorities at its year end results
which will be announced on Thursday, 25 October 2018.
For further information, please contact:

RDI REIT P.L.C.
Mike Watters, Stephen Oakenfull, Janine                                        Tel: +44 (0) 20 7811 0100
Ackermann

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                                                                 Tel: +27 (0) 11 447 3030

JSE Sponsor
Java Capital                                                                    Tel: + 27 (0) 11 722 3050

27 September 2018

About RDI

RDI is a 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
25.9% indexed and has a WAULT of 6.8 years to first break (8.2 years to expiry). This is complemented by
an average debt maturity of 7.0 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.

The Company owns properties independently valued at £1.6bn in the United Kingdom and Germany, Europe's
two largest, liquid and transparent property markets. RDI invests in assets with strong property fundamentals
spread across UK offices (including London serviced offices), UK logistics, UK shopping centres, UK retail
parks, UK hotels and German retail. RDI is well placed to take advantage of the increasing occupier
requirement for real estate owners to become high quality service providers, given its scalable operational
platforms and nearly a third of the portfolio invested in hotels and London serviced offices.

RDI holds a primary listing on the London Stock Exchange and a secondary listing on the JSE and is included
within the EPRA, GPR, JSE All Property and JSE Tradeable Property indices.

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

All figures as at 28 February 2018

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