Redefine International PLC £29 Million Manchester Office Disposal (4878V)

TIDMRDI

RNS Number : 4878V

Redefine International PLC

31 January 2017

REDEFINE INTERNATIONAL P.L.C.

("Redefine International" or the "Company")

(Registered number 010534V)

LSE share code: RDI

JSE share code: RPL

ISIN: IM00B8BV8G91

REDEFINE INTERNATIONAL COMPLETES GBP29 MILLION MANCHESTER OFFICE DISPOSAL

Redefine International, the FTSE 250 income-focused UK-REIT, announces that it has sold 201 Deansgate in Manchester for GBP29.15 million.

The office block was originally acquired as part of the AUK Portfolio in March 2016 and the sale price represents a net initial yield of 3.6% and a 14.3% premium to the last reported book value. The geared IRR over the investment period was 22%.

The property, which has been acquired by Aviva Investors, acting on behalf of Essex County Council, provides 7,776 sqm (83,688 sq ft) of office space and delivers annual net rental income of GBP1.1 million with a WAULT of 4.1 years.

The proceeds from the sale will be used to fund the refinancing and extension of certain of the Company's debt facilities. Terms have been agreed to extend the term of certain debt facilities with the Company contributing approximately GBP25.0m of equity to reduce the loans. The improvement to the terms of the debt facilities will deliver an attractive return on the equity contribution of approximately 10% per annum. Further details on the Company's plans for the evolution of the capital structure will be provided at the Capital Markets Day on Monday 6 February 2017.

Mike Watters, CEO of Redefine International commented:

"The disposal of 201 Deansgate represents yet another significant value enhancing opportunity that the AUK Portfolio offers the Company. After less than a year of ownership, we have delivered an excellent 14.3% premium to book value on behalf of our investors, whilst also de-risking the portfolio from a number of upcoming lease breaks due on the property. The proceeds from the disposal will be put towards reducing debt on favourable terms."

For further information:

 
 Redefine International P.L.C. 
  Mike Watters, Stephen Oakenfull,     Tel: +44 (0) 20 
  Janine Ackermann                     7811 0100 
 FTI Consulting 
  UK Public Relations Adviser 
  Dido Laurimore, Claire Turvey,       Tel: +44 (0) 20 
  Ellie Sweeney                        3727 1000 
 Instinctif Partners 
  SA Public Relations Adviser 
  Frederic Cornet, Lizelle du          Tel: +27 (0) 11 
  Toit                                 447 3030 
 Java Capital 
  JSE Sponsor                          Tel: +27 (0) 11 
                                       722 3050 
 

Note to editors:

About Redefine International

Redefine International is an income focused FTSE 250 UK Real Estate Investment Trust (UK-REIT) committed to delivering superior distributions to its shareholders throughout the property cycle.

The Company's income driven total returns are underpinned by a diversified portfolio, together with an efficient capital structure. The continued transformation of both the corporate structure and asset base offer a solid foundation to drive further value. The diversified portfolio, independently valued at GBP1.53 billion, is focused in Europe's two strongest economies, being the United Kingdom and Germany. The portfolio is weighted towards well located properties across a range of sectors, including retail, offices, distribution and hotels, which benefit from strong demand and from which they can capture income and value growth by attracting high calibre occupiers on long leases. The Company's investment philosophy is to effectively allocate recycled capital from mature assets into sectors and locations with strong occupier fundamentals and individual assets with realisable upside.

Currently the secure income stream is supported by a diversified portfolio and tenant base, with a WAULT of 7.8 years complemented by an average debt maturity of 6.9 years of which over 95% of interest costs are either fixed or capped. The Company is focused on all aspects impacting shareholder distributions and boasts one of the lowest cost ratio's in the industry whilst continuously driving lower cost of debt.

Redefine International 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.

The Company will be hosting a Capital Markets Day on Monday, 6 February 2017. The presentation and a live webcast will be available on the Company's website at 10:30am (UK time), 12:30pm (SA time) on Monday, 6 February 2017: www.redefineinternational.com.

For more information on Redefine International, please refer to the Company's website www.redefineinternational.com.

This information is provided by RNS

The company news service from the London Stock Exchange

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January 31, 2017 02:00 ET (07:00 GMT)