LONDON: RDI REIT Plc, the income focused UK Real Estate Investment Trust (UK-REIT), confirms that it has completed on the disposal of its UK retail parks portfolio of six assets.
The headline price of £156.9 million reflects a 3.0 per ent discount to the last reported 29 February 2020 values and a topped-up net initial yield of 7.5 per cent.
The transaction marks a significant milestone of the ongoing repositioning of the Company’s portfolio and reflects a pro-forma reduction in the Group’s overall retail exposure to 11.8 per cent. (29 February 2020: 28.4 per cent.).
As previously announced, the proceeds from the transaction will be used to pay down approximately £100m of the AUK revolving credit facility with the remainder held in cash within the Group to enhance cash and facility headroom.
RDI is an income focused UK-REIT with a diversified portfolio invested principally in the UK. The investment approach is driven by an in depth understanding of occupational demand including the impact of technology, transport and infrastructure investment.
The portfolio has been repositioned in recent years to increase its weighting to London and the South East and to provide greater exposure to our leading hotel and serviced office operating platforms.
RDI is committed to delivering attractive income led total returns across the real estate cycle. The current strategic objectives of a lower leverage capital structure and more focused allocation of capital are targeted at delivering an industry leading and sustainable income return.
RDI is a UK Real Estate Investment Trust (UK-REIT) and holds a primary listing on the London Stock Exchange and a secondary listing on the JSE. The Company is included within the EPRA, GPR, JSE All Property and JSE Tradeable Property indices.