RDI REIT PLC Acquisition of Industrial Estate for £26.3 million (7707B)

TIDMRDI

RNS Number : 7707B

RDI REIT PLC

27 September 2018

RDI REIT P.L.C.

("RDI" or the "Company")

(Registration number 010534V)

LSE share code: RDI

JSE share code: RPL

ISIN: IM00B8BV8G91

LEI: 2138006NHZUMMRYQ1745

RDI COMPLETES ACQUISITION OF GBP26.3 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 GBP26.3 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 GBP1.75 million with average rents of GBP12.90 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: [phone] 
 Ackermann 
FTI Consulting 
UK Public Relations Adviser 
Dido Laurimore, Claire Turvey, Ellie     Tel: [phone] 
 Sweeney 
Instinctif Partners 
SA Public Relations Adviser 
Frederic Cornet                           Tel: [phone] 
JSE Sponsor 
Java Capital                             Tel: + 27 (0) 11 722 3050 
 

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 GBP1.6bn 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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September 27, 2018 02:00 ET (06:00 GMT)