Redefine International PLC £26m Sale of BMW Showroom (3408P)

TIDMRDI

RNS Number : 3408P

Redefine International PLC

31 August 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 MAKES FURTHER PROGRESS ON DISPOSALS

WITH GBP26M SALE OF BMW SHOWROOM

Redefine International, the FTSE 250 income-focused UK REIT, announces that it has completed on the sale of the Sytner BMW showroom in High Wycombe for GBP26.1 million to a UK pension fund. The sale price reflects a net initial yield of 5.0% and a premium of 5.8% to the 28 February 2017 book value. The property was acquired in March 2016 as part of the AUK transaction. The disposal provides an opportunity to recycle capital out of an asset with limited near-term rental growth prospects at a low initial yield.

In the first half of the financial year the Company disposed of GBP95.0 million of assets at an average premium of 12.4% to the 31 August 2016 book value. It has since exchanged or completed on a further GBP46.6 million of assets which includes the sale of High Wycombe, at an average net initial yield of 5.8% and a premium of 10.7% to the 28 February 2017 book value. The other disposals include two secondary office assets in Bedford and Chatham and a standalone Carphone Warehouse unit at Merton Priory Retail Park.

The disposals are in line with the Company's strategy of enhancing the income characteristics of its portfolio by allocating capital to assets and locations that can deliver long term sustainable income returns.

Mike Watters, CEO of Redefine International, commented:

"This disposal is a further example of the quality of the assets in the AUK transaction, which has provided a number of opportunities to extract value over the last 18 months in line with our strategy. Together with the other recent sales, the transaction provides the opportunity to recycle capital into new investments, where we can use our asset management skills to deliver stronger income returns over the long term."

For further information:

 
 Redefine International P.L.C. 
  Mike Watters, Stephen Oakenfull     Tel: +44 (0) 20 
                                      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. At 28 February 2017, the diversified portfolio, independently valued at GBP1.5 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.

The secure income stream is supported by a diversified portfolio and tenant base, with a WAULT of 7.5 years complemented by an average debt maturity of 6.8 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 ratios 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.

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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August 31, 2017 02:00 ET (06:00 GMT)